top of page

GME and AMC Stock Analysis: Why I'm Bullish on GME but Not on AMC

gme and amc stock anaylysis

What a day we are having in the market—all the stocks have been rising, giving a big boost to our portfolios. Today, I'm addressing a specific reason some of my followers have asked why I have a bullish bias on AMC but not on GameStop (GME). In fact, if you look at my daily recaps on Twitter, you would see that I hold AMC common shares at $10, but I have $30 puts for GME for June, which have been performing well. So, why am I playing GME cautiously while being optimistic about AMC? Let's dive into the charts to understand my reasoning.

Understanding GameStop's Chart

When GameStop had that bullish move, it skyrocketed quickly, reaching significant retracement levels. Specifically, it hit the 61.9% Fibonacci retracement level, climbing to a high of $64.83—a massive move of more than 37.5%. This rapid ascent has caused it to pull back substantially. I'm not saying AMC isn't also experiencing pullbacks, but GameStop's movements have been more exaggerated.

Key Levels for GameStop

Let's break down the key levels I'm watching for GME:

  1. 3614 Level: After its substantial rise, I expect GME to retrace to around $36.14.

  2. Ichimoku Cloud at 1974: This level is critical because, according to the Ichimoku Cloud indicator, prices tend to revert to this level, which is currently at $19.74. This reversion is what I'm looking for in GME.

In summary, GME appears overextended, and I'm betting on a correction with my $30 puts.

Analyzing AMC's Chart

Now, let's shift our focus to AMC. While percentage-wise, AMC has also made significant moves, it hasn't reached the same technical levels as GME.

Key Levels for AMC

Here's what I'm monitoring for AMC:

  1. EMA 8/21 Cloud at 523: AMC needs to hold above this level first. Once it does, I anticipate a move to $22.83.

  2. Potential Highs: If AMC continues to perform well, it could reach up to the top of the cloud at around $50. Historically, AMC has hit highs of around $60. Even a 37.5% move could push it to $300, although I'm not expecting that kind of extreme move anytime soon.

Investment Strategy for AMC

Unlike GME, where I'm using puts, I've opted for common shares in AMC. This strategy limits my risk while allowing me to capitalize on any upward movement. Meme stocks are notoriously volatile, and their short squeezes are unpredictable. However, AMC's potential to reach $22.83 and possibly higher makes it an attractive bet.


To wrap up, my mixed opinions on AMC and GME stem from their current technical setups. GME seems overextended and due for a pullback, which is why I'm using puts. Conversely, AMC hasn't reached extreme levels and shows potential for further gains, hence my bullish stance with common shares.

Remember, all the information presented is for educational purposes only. You can use this information for your trading decisions, but you're solely responsible for those decisions. Happy trading!


bottom of page