The theater chain was rising on news of a tentative writer’s strike deal, which AMC CEO Adam Aron said would benefit movie theaters, as halted productions resume filming once a formal deal is reached.

AMC has seen decreasing volume since plunging 35% on Sept. 6, when the stock broke down from a bear flag pattern on the daily chart, which Benzinga pointed out earlier that day.

Since then, AMC has been consolidating mostly sideways on decreasing volume, suggesting a larger move is likely on the horizon. Although AMC’s price action appears largely bearish, the stock’s relative strength index is measuring in at about 29%, suggesting at least a brief pop higher may be in the cards.

When a stock’s RSI falls below the 30% level, it's considered to be oversold. When a stock enters oversold territory, it indicates the security's price no longer reflects the asset's true value, which can signal a reversal to the upside.

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The AMC Chart: The lack of volume in AMC caused the move upward to lose momentum and the stock rejected the eight-day exponential moving average (EMA), as it has for the last four trading days. Bullish traders want to see the stock eventually close a trading day above that area, which could signal strength is returning.

Read Next: Hollywood Writers Accept Tentative Deal, Including Pay From Streamers: What About Actors?

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