Meme stock AMC surges 12% on hedge fund short!
Meme stocks are back in focus. One of the favourites from the Reddit crowd has been AMC Entertainment Holdings. The stock recently surged 12% higher on news that hedge fund veteran Odey Asset Management went short the stock and was up nearly 30% this week before settling lower today.
Retail investors that focus on meme stocks often find the companies that are being heavily shorted to try and short squeeze them. From the lows of this year to the highs of this year the stock surged more than 4,000% higher.
However, the stock is now down more than 60% from those highs, so it is extremely volatile.
AMC shares are now trading at an interesting technical level, retesting the highs of 2014 and 2016. The $35.50 price level previously acted as resistance and now could turn into support.
Due to the extreme volatility in this stock, traders may look for additional clues on lower timeframes to confirm if buyers are regaining control.
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