Death, Taxes and Dilution on AMCAMC Entertainment Holdings, Inc. Class ABATS:AMCHotsauceShoTYMEDeath, taxes, and dilution on AMC are the only guarantees in life. This is why you take profits on meme stocks. A rug pull is always around the corner. Honestly, derivative positions should have been sold on the 30-minute candle that failed to break out of the pennant around the $2.80 trading range at the end of Monday's session. Pre-market price pushed as high as $3.05 and failed to break through. To me, that was an early indication that higher levels of supply were unlikely to be tested. The subsequent pennant break simply confirmed it. I don't see AMC consolidating here and moving higher. I see another move down to test the Daily 50 SMA and the bottom of the channel AMC has been trading within for quite some time. While AMC previously fell out of that channel, this recent rally pushed price back inside it. Since re-entering the channel, we have yet to see a meaningful test of the lower boundary for validation. Until that happens, I view the move as incomplete. The consolidation around the $2.08 area is also telling. We can see a significant amount of effort, measured by volume, being used to push price toward the top of the pennant that formed after the pre-market dilution news. Despite all that effort, price never managed to break out. What stands out to me is that the opposite appears true on the downside. Pushes lower are requiring less effort while producing greater results. That's not the type of price action I want to see if I'm bullish. If I had to guess, I would expect higher timeframes to print a candle body near the Daily 50 SMA, with a wick probing the bottom of the channel before a meaningful reaction occurs. Key Levels Resistance: $2.15 Support: $2.08 Break and hold above $2.15: opens the door toward the $2.35 area Lose $2.08: increases the odds of a move toward the Daily 50 SMA and a test of channel support Not financial advice. Just one trader's interpretation of the chart.