Popcorn Ready? AMC Stock Busts Through Bullish Formation

AMC Entertainment Holdings, Inc AMC on Tuesday broke up from a bull flag pattern Benzinga called out last week; the stock faked a bullish break out on Monday.

Early Tuesday afternoon, the stock was battling with a resistance level at the $46.55 mark to try to gain the level as support.

See Also: How to Buy AMC Stock Right Now

The AMC Chart: After hitting an all-time high of $72.62 on June 2, AMC’s stock entered into a sharp downtrend and fell all the way to the $29 level where it put in a bullish triple bottom pattern on the daily chart after hitting the level and holding above it on Aug. 4, Aug. 5 and Aug. 11.

On Aug. 11, the stock then made a bullish trend change and has put in a series of higher highs and higher lows. The most recent run-up to a high of $48.20 paired with the consolidation to a low of about $39 created the pole and channel formation of a bull flag pattern. For AMC to continue in its uptrend, it will need to make another high above the $48.20 level.

AMC is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading about 136% above the 200-day simple moving average, which indicates overall sentiment in AMC is bullish.

• Bulls want to see sustained bullish volume drive AMC up above the $46.55 level and for momentum to push it up to make a new higher high to confirm the uptrend is still intact. If the stock can clear the levels, it has room to move up toward $52.97.
• Bears want to see big bearish volume drop AMC back into the falling channel of the flag and below support of the eight-day EMA, which could push the stock down toward the $39.07 level. If the level is lost, AMC could drop further toward $31.81.

Photo: Pavel Danilyuk from Pexels