- AMC remains stuck rangebound on Friday, closing at 40.00.
- AMC stock is poised for a technical breakout, but which way?
- AMC CEO finally sells some stock after 6 years, is it time for you to sell?
AMC shares closed bang on $40 on Friday in a neat bit of symmetry. The stock has been consolidating of late with a reducing range. This can often lead to a breakout but which direction is the obvious question.
AMC chart, 15 minute
The chart above shows the small range over the last few days as AMC recovers some losses from earlier in the week.
AMC stock news
A decent bit of news flow with this one with some more insider transactions to look over as well as the recent earnings. The earnings report was solid with a beat on the top and bottom lines. Earnings per share (EPS) came in at -$0.44 versus -$0.53 estimated. Revenue was $755.6 million versus $708.25 million estimated. However, AMC shares dropped after the earnings release. Most likely this was to do with the anticipated outperformance as AMC shares had traded higher before earnings. AMC stock dropped 11% after earnings and fell another 4% the next session. No surprise then that we have seen a bit of a bounce to close out the week.
News then reached of AMC CEO Adam Aron selling stock for the first time in six years and this has been followed up with more insider sales being reported. Friday sees reports of CFO Sean Goodman selling 166,250 shares and that was on top of sales last week from other senior executives. The market generally takes a negative view of insider sales and they are very closely watched by investors. However insider sales are accelerating lately due to the Biden administration targetting the super wealthy for tax
AMC stock forecast
Now to th epotnetial breakout. The ever decreasing range has seen the triangle formation come close to its conclusion. A breakout to either side is inevitable. We already got one false move higher so is the next real move going to be lower. so far nothing is giving us a clear enough signal. The stochastic gave a crossover buy singal late last week but nothing else confirmed this. The RSI has been trending higher but it is in line with price so no divergence to identify. $42.50 and $38.25 are about the top and bottom of the triangle so the key elvels for breakouts. Breaking to the upside will then target $52.79, to the downside the target will be $29.82.
The weekly chart does show the possibility of the break being higher with a bullish pennant formation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises to daily tops past 1.0800 post-NFP
The selling bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in April, lifting EUR/USD to the area of fresh peaks above 1.0800.
GBP/USD surpasses 1.2600 after disheartening US Payrolls
The resumption of the downward pressure in the US Dollar motivates GBP/USD to extend its earlier advance to the area beyond 1.2600 the figure in the wake of the release of US NFP.
Gold climbs to new highs above $2,300 on poor NFP prints
The precious metal maintains its bullish stance and breaks above the $2,300 barrier on Friday after US Nonfarm Payrolls showed the economy added fewer jobs than expected during last month.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.