Why It Could Be Do-Or-Die Time For AMC Bears
AMC Entertainment Holdings Inc. (NYSE:AMC) shares traded higher Wednesday after retail traders were able to push the stock higher.
The stock is up 2.8% to $39.08 at publication time.
AMC Daily Chart Analysis
- Shares are trading in what technical traders would call a flag pattern. Although this is considered bearish, the stock could break out of the pattern in either direction.
- The stock is trading below both the 50-day moving average (green), and the 200-day moving average, indicating the sentiment in the stock has been bearish.
- Each of these moving averages may hold as an area of resistance in the future.
Key AMC Levels To Watch
- The stock is trading in the flag pattern, but outside of the flag pattern the stock trades within a sideways channel on the larger scale.
- The flag pattern may break out in either direction and likely will see a stronger push in the same direction as the break.
- If the stock breaks pattern resistance, it may see a push higher up toward the $60 resistance in the channel. A break of pattern support could let the stock drop to near the potential $20 support level in the channel.
See also: How to Buy AMC Stock
What’s Next For AMC?
Bullish traders would like to see the stock break above pattern resistance in the flag pattern. This could let the stock see an upward push toward channel resistance. Eventually, bulls would like to see the stock break above the channel resistance and consolidate above it for the possibility that the stock sees another leg up.
Bearish traders would like to see the stock break out of the flag pattern to the downside. If the stock can break below pattern support, then it may see a further push downward. Bears want to see the stock break below pattern support and start heading toward the $20 support. If the stock can break below the $20 support level, it may see another strong bearish push.
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