To The Moon

Amazing week for meme stocks, notably GameStop (GME) and AMC Theatres (AMC) which have surged significantly at the beginning of the week, although their share prices are pulled back from peak towards the end of the week. This rally is attributed to a social media post by Roaring Kitty, the key figure in the 2021 meme stock frenzy. His renewed activity has sparked speculation of a comeback. 

For such, we can observe mostly all the memes speculated last week. My top picks of FFIE and AMC also skyrocketed to the moon. You may refer back to my last Saturday article and see how I catch this surge through technical analysis. Well, I cannot deny that it consists of a certain portion of good luck. 

AMC

Despite extreme volatility and over 100% growth these days, AMC stock is far from its former highs. Most AMC observers are well aware that the company is headed for a major debt restructuring that will probably wipe out most of its existing equity value. Its share price peaked in 2021 at about 230 USD. The face value of debt and lease obligations total more than 8 billions dollars.

AMC daily chart

Both GME and AMC retraced badly after their rallies earlier this week. For AMC, the share price was rejected by the EMA200 trendline resistance last Tuesday. After that, it followed by a "Three black Crows" pattern, which was an extremely bearish sign. The selling pressure remained high in this stock, therefore I am $AMC Entertainment(AMC)$  bearish for the share price next week, as many retailers were trapped at high price again! 

FFIE

Faraday Future Intelligent Electric was up more than 6000% for the week. A huge percentage of short interest on this stock is a major factor in the sudden buying action. The electric vehicle had been trading for pennies before the recent rally, which prompted the company to receive a letter from Nasdaq indicating that it was not in compliance with listing rules. The market cap on FFIE is now back over 100M .

FFIE daily chart

A perfect catch for over 6000% gain last week. I opened a small position at 0.55 USD and locked profit last night at 3.50 USD, sweet gain. 

FFIE high risk trade

By looking at its technical chart, due to the craziness of the stock, nothing much we can analyze through technical indicators. However, we can apply "see profit, take profit' strategy. The stock is in a crazy stage now with overbought condition. The pullback will be anytime and will be very painful as well. The potential upside is around another 41% from current price, but the risk is super high. I guess FFIE will retrace, just like GME and AMC after some unreasonable rally. For such, I am $Faraday Future Intelligent Electric Inc.(FFIE)$  for the company share price next week.

RIVN

Shares of electric vehicle maker Rivian Automotive sank after rising early in the week on the brief resurgence of interest in meme stocks. If you recall well, Rivian had a moment as a meme stock. It had a huge run-up shortly after the automaker's IPO in late 2021, briefly giving Rivian, which had only just begun production of its first vehicle, a market cap of more than $100 billion.

Rivian daily chart

For Rivian, the share price maintains well above 10 USD last week. Anything above this price is a good sign for the share price recovery. Last night was the 4th times that Rivian challenged the 10 USD neckline support. This is a very strong support and will lead tlRivian's rebound next week $Rivian Automotive, Inc.(RIVN)$ . However, you must cut loss once the share price plunges below 10 USD as this is your last defence. 

Advice

Meme stock prices are super volatile. If a stock is in the profit-taking stage, it might be overvalued, posing risks to new buyers.

Investing in MEME stocks can be an option, but it's essential to do so moderately and with a rational approach.

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