Two memes - Potential rebound π² - Technical Analysis
For meme stocks, I would like to continue my weekly review on AMC and FFIE, through technical analysis.
AMC
AMC traded more than 11% lower early last week after the company revealed preliminary, unaudited first quarter financial results along with a warning about the continued negative impact of the dual 2023 Hollywood writers and actors strikes on box office returns. The company will report its full financial results for the first quarter after the stock market closes on Wednesday, May 8, 2024.
AMC daily chart
For AMC chart, we can observe that the stock forms a higher low recently and currently well supported above 2.90 USD. Everything seems to be healthy now. Next week earnings will be a key decider for the stock price. I choose to vote bullish for $AMC Entertainment(AMC)$
FFIE
Last Tuesday, Faraday Future announced that it had received a letter from the NASDAQ Stock Exchange indicating that it would be delisted for not complying with NASDAQ's listing rules. The company's securities had a closing price of $0.10 or lower for ten consecutive trading days. Anyone of you still holding FFIE? I think delisting is almost firm and it will just be a matter of time now.
FFIE in downtrend parallel channel
Let's look at FFIE technical chart. The share price still follows the downtrend parallel channel drawn few weeks ago. However, currently it seems want to stick close to the upper wall of the channel. It's possible that the share is preparing for a potential breakout.
FFIE seems to be breakout from downtrend line
If we look at the downtrend line from mid March (drawn in orange colour), we can consider that FFIE just breaks out from this downtrend this week. Since the company might going to be delisted soon, and with targeted earnings release on next Friday, I choose to bet for a strong rebound for $Faraday Future Intelligent Electric Inc.(FFIE)$
Recent new meme
The latest meme sensation Destiny Tech100 DXYZ $Destiny Tech100 Inc(DXYZ)$ , holds shares in private tech firms like SpaceX, OpenAI and Epic Games. This closed-end fund fell more than 85% from its recent peak. It is really dangerous to invest in such meme stock. Most of them are only suitable for skilful traders, over a short term horizon and definitely not for long hold.
Do take note that risking money in speculative investments can be exhilarating, but it is rarely the path to long-term wealth.
@TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @Daily_Discussion @Meme_Tiger
Modify on 2024-05-09 09:05
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AMC Entertainment (AMC) Analysis:
Business and Industry Overview:AMC Entertainment is a leading theatrical exhibition company, operating one of the largest cinema chains in the world. The company is primarily engaged in the business of owning, operating, and managing theaters. The industry is expected to grow as people continue to seek out the experience of watching movies on the big screen.
Earnings Analysis:AMC recently revealed preliminary, unaudited first-quarter financial results, which showed a negative impact from the dual 2023 Hollywood writers and actors strikes on box office returns. The company will report its full financial results for the first quarter on May 8, 2024. The earnings forecast for 2024 indicates a negative EPS of $1.55. However, it's important to note that poor earnings may not necessarily result in a decline in stock price, as seen in cases like Tesla and Apple, where stocks rebounded despite poor earnings.
Trend Analysis:Looking at the daily chart, AMC has formed a higher low recently and is currently well supported above $2.90. The stock price is currently at $3.30. The support price on May 2 was $3.12, and the resistance price was $3.14. The average cost is $3.58.
Analyst Viewpoints:Analysts have provided a target price range for AMC. The mean target estimate is $4.62, with a low estimate of $3.10 and a high estimate of $8.00. The analyst recommendation for AMC is 4 hold, 2 underperform, and 1 sell.
News Impact:The recent news about the negative impact of the Hollywood strikes on box office returns may have contributed to the decline in AMC's stock price. However, the rebound potential next week could be influenced by the upcoming earnings release and the market's reaction to it.
Faraday Future Intelligent Electric Inc. (FFIE) Analysis:
Business and Industry Overview:Faraday Future Intelligent Electric Inc. is an electric vehicle manufacturer. The company focuses on developing and producing intelligent electric vehicles and related technologies. The electric vehicle industry is expected to grow rapidly in the coming years as the demand for sustainable transportation increases.
Earnings Analysis:Faraday Future recently received a letter from the NASDAQ Stock Exchange indicating that it would be delisted for not complying with NASDAQ's listing rules. The company's earnings forecast for 2024 indicates a negative EPS of $15.39. The risk associated with investing in a company facing delisting is very high.
Trend Analysis:FFIE has recently broken out from a downtrend line that started in mid-March. This breakout could indicate a potential reversal in the stock's downward trend. The support price on May 2 was $0.038, and the resistance price was $0.048. The average cost is $0.1305. The current stock price is $0.0409.
Analyst Viewpoints:There is limited analyst coverage for FFIE, with only one hold recommendation available.
News Impact:The news of Faraday Future's potential delisting and the upcoming earnings release may have contributed to the recent trends in FFIE's stock price. The risk associated with investing in a company facing delisting should be carefully considered.
Disclaimer:The above analysis is based on the provided information and should not be considered as investment advice. Investing in stocks involves risks, and the stock market is subject to fluctuations. It is important to conduct thorough research and analysis before making any investment decisions.