After several months on the sidelines, retail traders returned to their brokerage apps, driving up double-digit gains in meme-stock market darlings GameStop Corp. (GME) and AMC Entertainment Holdings, Inc. (AMC), among others.

What's more, the afternoon surge in a group of stocks made famous last January by Reddit trading group Wall Street Bets came out of nowhere. One possible explanation may relate to the Food and Drug Administration's (FDA) recent 澳洲幸运5官方开奖结果体彩网:full approval of drugmaker Pfizer Inc.'s (PFE) COVID vaccine. More confidence in the jab means more people getting inoculated, giving consumers the courage to visit AMC theatres for a screening of the latest blockbuster movie. Similarly, gamers are more likely to return to their local 澳洲幸运5官方开奖结果体彩网:brick-and-mortar GameStop store know🍬ing that there's less chance of contracting the virus.

Let's take a closer look at each stock and use 澳洲幸运5官方开奖结果体彩网:technical analysis to put together possible trading plays.

GameStop Corp. (GME)

The once slow-moving video game retailer GameStop shot to prominence earlier this year when its stock rose more than twentyfold in less than 15 trading sessions as retail investors banded together to squeeze out institutions and 澳洲幸运5官方开奖结果体彩网:hedge funds that had large 澳洲幸运5官方开奖结果体彩网:short positions. Tuesday's rally saw GameStop stock jump 27.53%, its largest one-day gain in five months. Trading volume also backed the buying, with over 14 million shares changing hands, more than ten times the average amount tra🔜ded over the past five sessions. Through yesterday's close, the stock has gained over 1,000% since the start of the year but returned just 0.41% over the past three months.

GameStop shares reclaimed the 50-day 澳洲幸运5官方开奖结果体彩网:simple moving average (SMA) Tuesday in a move sure to attract further attention from retail traders looking to play the short-term momentum. Those who enter here should think about booking profits on a retest of the late-January peak at $483. Manage downside risk by placing a 澳洲幸运5官方开奖结果体彩网:stop-loss order beneath yesterday's low at $165.15 and raising it to 澳洲幸运5官方开奖结果体彩网:breakeven if the price climbs above intermediate resistance at $3🐭00.

AMC Entertainment Holdings, Inc. (AMC)

Movie theater operator AMC Entertainment saw its stock price rocket from a little over $2 to more than $20 in a matter of days during the same period as the GameStop rally. Frenzied buying returned in late May, propelling the shares nearly 500% in just seven trading days. After taking the foot off the accelerator for several months, the so-called Robinhood retail army returned with a vengeance, driving the theater chain's stock price up 20.34% on the heaviest trading volume since mid-June. Moreover, AMC 澳洲幸运5官方开奖结果体彩网:call options with a $40 and $50 澳洲幸运5官方开奖结果体彩网:strike price were among Tuesday's most traded 澳洲幸运5官方开奖结果体彩网:equity derivatives, indicating bullish bets for further upside. As of Aug. 25, 2021, AMC has returned almost 2,000% ꧅💝year to date, making it one of this year's best-performing stocks.

AMC shares also closed above the closely watched 50-day SMA Tuesday, continuing their push higher from a multi-month uptrend line. Active traders who position for follow-through buying should consider setting a 澳洲幸运5官方开奖结果体彩网:take-profit order around $71.70—an area on the chart where the price may find selling pressure near its recent 澳洲幸运5官方开奖结果体彩网:record high. Proteℱct against a sudden loss of mom♔entum with a stop placed under this week's low at $34.41.

Disclosure: The author held no positions in the aforementioned securities at the time of publication.