AMC Entertainment Holdings, Inc (NYSE:AMC) was spiking over 5% at one point on Wednesday as the stock continued a six-day bullish streak ahead of the release of "Taylor Swift: The Eras Tour."

The concert film brought in over $100 million in worldwide advance ticket sales as of Oct. 4, and AMC CEO Adam Aron expects demand to remain strong, noting that most people buy tickets the day before or on the day they plan to view a movie.

From a technical analysis perspective, AMC is trading in an uptrend and possibly setting up a cup-and-handle pattern, but needs a pullback because the stock hasn’t retraced since Oct. 3.

A cup-and-handle pattern can be either a powerful reversal indicator when found at the bottom of a downtrend or a continuation pattern when found in an uptrend.

The pattern is formed when a security forms a rounded trough (cup) and then rises upwards before consolidating downward between two parallel lines (handle). The handle should begin to form before the stock has risen as high as the top of the left side of the cup.

When the security breaks up through the handle on higher-than-average volume, it indicates the pattern was recognized, and a rally may follow.

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The AMC Chart: AMC negated its downtrend on Oct. 3, when the stock formed a higher low. AMC confirmed a new uptrend two trading days later, with the formation of a higher high. Since Oct. 5, AMC has continued to trend higher and hasn’t retraced to form another higher low.

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