# Is AMC Stock Gearing Up for Another Massive Move?

Canonical: https://tradersdailydirection.com/is-amc-stock-gearing-up-for-another-massive-move/

In the Sept. 29 issue of [**_Traders Daily Direction_**](https://tradersdailydirection.com/how-i-plan-to-trade-amc/), I told you about my trade in **AMC Entertainment Holdings, Inc.** (AMC).

This is the “Mother of all Meme Stocks” that I first brought to your attention [**back on Aug. 19**](https://tradersdailydirection.com/the-mother-of-all-meme-stocks/).

The stock made a massive run in early 2021, surging over 3,000% from the January low to the June peak.

But shares then started to consolidate in July and moved sideways through early August.

This gave me a low-risk entry point to start a small position in the shares.

The stock started to trade higher after my initial entry and got into the $50 range briefly, but I didn’t get the follow-through I was looking for.

However, I continued to stalk a new entry on AMC.

I told you that if price continued to tighten and volume stayed low, I would be looking to [**buy on a fresh breakout**](https://tradersdailydirection.com/the-four-big-breakout-commandments/) near the $42 area.

I even drew a chart of what I was hoping to see. It looked like this:

![](https://lh5.googleusercontent.com/AfEfeMSlmNYb8t0sUevl_emzG3swpAYBaoTdM50psRuNyi131pcVLUbzYj5ArpbzjkOTirkLXzzmIYupJeaKKf4WOzeWUc1bJQ4sv-d756wPvqKst7xdj3ejIG1zBqgSwXv6WvgO=s0)

**_Daily Chart of AMC Entertainment Holdings, Inc. (AMC) with Expected Move & Volume -- Source: TradingView_**

Now, fast-forward to today, and this is how the chart has developed…

![](https://lh3.googleusercontent.com/spSoCaX3UclKDEAeeI3t7-lrgZffFgTQ7R4oijQ3YU7hJMy2MxqEV5r_iN2yOdblmEt1UDhuRquGBTQWm7tr_ZQco2BWSuOPfOj-ay--TnP1o1Le-iEbw9QWGJycUdHIIDxYGb6Q=s0)

**_Daily Chart of AMC Entertainment Holdings, Inc. (AMC) with Volume -- Source: TradingView_**

As I hoped, AMC’s price action has tightened significantly.

This “compression” is being accompanied by a significant drop in volume -- [**another telltale sign**](https://tradersdailydirection.com/how-volume-tips-me-off-to-surging-stocks/) that sellers are drying up and a breakout could be imminent.

## **Trading a Volatile Stock**

Now, AMC is a volatile stock. It can move 30% or more in a single session.

Therefore, we need to spot the upside turn as early as possible in order to find a low-risk entry point.

At this point, here’s how I’m looking to play it…

![](https://lh6.googleusercontent.com/s3Xvsa9ImJb_3Jva61bypzwgy5NlxT-mivo79HcAbgWg6659XayWx4DM-hy0JkQSdy6KyfFFC7R3OHLcqyTcrVJCSq1QUE5iYOsFhK41eIXzByOIjsZ2DpeotxEXFx8tfkXlbYaz=s0)

**_Daily Chart of AMC Entertainment Holdings, Inc. (AMC) with Potential Entry & Stop -- Source: TradingView_**

My entry trigger will be a move above the Oct. 8 high of $38.78. This means placing a buy stop order at $38.80.

Once filled, I will place a sell stop order at $33.70.

So, if AMC takes out the September low, I will exit the trade automatically.

This equates to a total risk of 13% on the trade.

For aggressive traders that want to play it tighter, you could place your stop beneath last week’s low at $35.60.

This would bring your risk down to 8.25%.

However, in that scenario, you run the risk of [**choking off the trade too quickly**](https://tradersdailydirection.com/how-to-handle-the-squat/) if it doesn’t shoot up right out of the gate.

I’ll continue to update you on AMC as the trade progresses, so be sure to check back soon.

Embrace the Surge,

![](https://lh4.googleusercontent.com/GSyd71BdQfUgehJWiO8pB7rOQrgq4WP8dFsMWEHhV6_bUp6qvzL4kgJoCiDH-2K_4ew840FAZ7TOuHBHSOO8Uy5O5v8JAaC_eZtvMjhYWJytA3Rtc0jx8ss25rvIv4VHI_W7LTqD=s0)

Ross Givens

Editor, **_Traders Daily Direction_**