Short squeeze 2.0 on Wall Street: This stock gains whopping 35 per cent in just one trading session

Remember how a group of traders drove the price up of a stock named, GameStop on Wall Street amid short squeezes? If you’re unable to recall that incident, there’s nothing to worry about because history is repeating itself all over again. Metaphorically speaking, the plot of the movie is the same; only the protagonist has changed! 

However, before that, let’s first know what is ‘short squeeze’? A short squeeze event occurs when traders push up the price of a stock, resulting in a swift movement in the stock price. This, in turn, forces short sellers to rush and cover their short positions in order to minimise losses. As a matter of fact, this short-covering aids the prices to move further higher.   

‘Short squeeze’, was the talk of the town in the earlier part of the year and now, it has once again started grabbing the headlines. In the month of January 2021, a short squeeze took place in the stock of GameStop, where it defied gravity and skyrocketed from the low of USD 17.08 to USD 325.     

One of the basic premises of technical analysis is that history repeats itself. Well, this premise is turning out to be true on Wall Street, as once again, the saga of a short squeeze is likely to be witnessed. However, this time the stock is different, but the rules are more or less, the same.  

So, without creating any more suspense, it’s time to reveal the name of that stock! It’s AMC Entertainment Holdings, a theatrical exhibition company that conducts operations via two segments i.e. the US & international markets. The stock jumped a whopping 35.5 per cent on Wednesday in the US. It gained as much as 164 per cent month-till-date.   

It is believed that retail traders continue to crew together in an attempt to squeeze the stock higher. The movie theatre chain’s stock has overtaken GameStop to become the favourite of all and this can be gauged from the fact that it is by far, the most-mentioned stock on subreddits and r/wallstreetbets over the last 24 hours.