To The Moon

Recently the market is hot with meme stocks again, mainly due to Trumph related counter like DJT and also AI related IPO like ALAB and Reddit.

However, it is important to understand that investing in any meme stock or “meme coin” is a risky endeavour. Surges in price that cannot be explained by any company fundamentals are called asset price bubbles. Speculative bubbles are quite common in financial and cryptocurrency markets and offer opportunities to generate abnormal returns in a short period of time. We will talk about a few famous memes in this article.

Well, let's start with the classic meme, $AMC Entertainment(AMC)$ . Earlier this week, the share plummeted after the theater chain indicated that it might sell up to 250 million dollars worth of its stock. Technical wise, the share continues to trend lower, very bearish trend in short term and it will continue like this without any great stimulus. 

AMC daily chart

Next, let's look at the two EV sector memes. First one will be the worst performer, $Faraday Future Intelligent Electric Inc.(FFIE)$ . After a cash crunch and supply chain issues which wiped nearly 99% of its market value, Faraday is planning for another reverse stock split! Endless split, big disappoinent to its investors. The stock cannot even sustain on the recent strong support line and breakdown last night. Game over for FFIE, more falling knives are expected jn this counter! 

FFIE daily chart

Secondly, we will look at $Rivian Automotive, Inc.(RIVN)$ . Rivian beats EV production estimates with shipments rebounding recently. What a great news for Rivian and this might be a trend reversal for the stock. Moreover, technical wise, the share price is forming a double bottom and is expected to rebound next week! We just need to wait patiently for the confirmation signal.

Rivian daily chart

The best "meme" stock currently will be $Occidental(OXY)$  , our Warren Buffett favourite. Really super bullish technically with all the critical EMA (10, 25, 50,200) line facing upwards. The share price engages into a rally since mid February, simply crazy! Another main reason is due to increasing market price for oil. Recently, OPEC+ extends voluntary oil cuts into Q2 to bolster market amid global uncertainties which may push the oil price higher again.

OXY daily chart

Last but not least, let's look at $Sea Ltd(SE)$ . The company recently recorded FY2023 net profit close to US$ 163 million, which was a new milestone for the company to achieve its first full year profit since IPO. Technical wise, SE share price seems to hold pretty well above the EMA200 critical trendline after the breakout in early March. Anything above EMA20p won't be dangerous for the share price. Worth to put this stock in your watchlist now. 

SE daily chart

Do pay extra cautious to meme stocks as they can be risky for investors as they have a tendency to burst. Participating in such speculative behaviour is typically considered irrational since it is extremely hard to justify the growth of the price.

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