This week’s price action in GameStop and AMC Entertainment could cause a repeat of the 2021 meme stock frenzy.
AMC shares rocketed higher at the open but have since fallen back to a gain of around 50%. The price was rejected at the $11.17 resistance, but traders should keep an eye on any support that emerges.
According to data from J.P. Morgan, GameStop and AMC shares were the most traded by retail investors on Monday.
“Roaring Kitty”, a social media character created by Keith Gill, was a key architect of the meme stock frenzy in 2021. Gill returned to X after three years away.
GameStop surged as much as 118% on Monday, but the shares surged another 100% in pre-market trading and were up X on Tuesday.
AMC also surged 78% to $5.19. The world’s largest theatre chain more than doubled from a record low it hit in mid-April.
Other names were also boosted, with Blackberry up 27% and gains in Reddit. Solar stocks were boosted on Tuesday, but some have heavy short positions and could also see attention from retail crowding.
GameStop shares soared again, reaching highs not seen since the meme stock environment of 2021. However, the price tailed back to show gains of around 35%.
We still need to hear the end of these moves. Gill has yet to mention any specific stock name on X. It is possible that he does not even support GME and AMC at this time. There could be activity in other stocks.