Short squeeze has not contributed to AMC’s recent riseDusaniwsky estimates that 89.6 million shares are shorted or 20% of the 448 million shares. AMC stock price (right axis) and number of shares shorted (left axis) Ihor Dusaniwsky, S3 PartnersDusaniwsky has developed a Short Squeeze score and ranks AMC’s metric a 10 out of 10 for a short squeeze. He added, “While a stock can be “crowded” it might not necessarily be a short squeeze candidate. An additional variable, which is necessary for a short squeeze to occur, are substantial net-of-financing mark-to-market losses.” Which the shorts have definitely seen this week. Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMC’s recent rally has pushed it into potential Short Squeeze territory.”In very overbought territoryWith the huge spike in AMC’s shares they are definitely in overbought territory.

Source: Forbes May 28, 2021 22:07 UTC