AMC Entertainment Shows Short-Term Weakness, But Bullish Long-Term Trend: Analysis

AMC Entertainment Holdings, Inc AMC was edging slightly lower on Thursday, trading inversely to the S&P 500, which was rising about 0.4% after jobless claims came in higher-than-expected.

The movie theater chain stock lost support at the eight-day exponential moving average (EMA) but AMC has been trading in an uptrend since May 31. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The AMC Chart: On Tuesday and Wednesday, AMC attempted to regain the 50-day simple moving average (SMA) as support but rejected the level both times. AMC may be trading lower on Thursday due to that rejection.

• AMC’s most recent higher high within the uptrend was formed on Tuesday at $5.15 and the most recent confirmed higher low was printed at the $4.52 mark on June 8. If AMC bounces on Friday, Thursday’s low-of-day will become the next higher low within the pattern.
• AMC is trading under the eight-day and 21-day EMAs, with the eight-day EMA trending under the 21-day, which is bearish. Bullish traders want to see AMC close the trading day above the eight-day EMA, which has been guiding the stock higher since June 7.
• AMC has resistance above at $5.23 and $6.33 and support below at $4.31 and $3.56.