- AMC stock is getting stuck and rangebound.
- The entertainment giant shares need to break $48 soon to remain bullish.
- If it breaks below $40, the chart turns neutral.
AMC is at a key juncture in the short-term trading view. The stock surged back into the minds of retail investors in late August with a powerful 20% move, but since then it has largely been treading water, going sideways with little strong direction evident. Something needs to happen to keep the momentum going and get things moving again. The initial move on August 24 took the stock up through the key resistance at $40, and so breaking out of the late summer range. Consolidating after a breakout is good, but consolidate for too long and the move loses power and bears start to circle. This is exactly what is happening to AMC. The next big resistance is $48 and AMC stock needs to get through sooner rather than later.
Tuesday's pre-market shows pretty much more of the same indecision with AMC slightly higher at $44.30. Friday's unemployment report has meant equities are likely to keep their record-breaking strength as the Fed is unlikely to taper or raise interest rates any time soon.
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AMC key statistics
| Market Cap | $22.3 billion |
| Price/Earnings | |
| Price/Sales | 3 |
| Price/Book | |
| Enterprise Value | $36 billion |
| Gross Margin | -0.74 |
| Net Margin |
-3.15 |
| 52 week high | $72.62 |
| 52 week low | $1.91 |
| Average Wall Street Rating and Price Target | Sell $5.44 |
AMC stock forecast
The chart below shows why AMC is likely bound to break $48. The volume profile bars to the right show a volume gap or shelf, an area of low volume. Low volume usually means prices can move through more easily, meaning if AMC breaks $48 it can get through to the next high volume zone at $60 more easily. But the longer this takes, then the less likely it is to happen. AMC has had a few tests of $48 and failed, so one or two more and it really needs to go. Otherwise, the stock will be in danger of retracing back to $40. Breaking the latter level would end the short-term bullish move and put the stock back to neutral. Breaking $29.82 would put AMC into a bearish trend.
We always like to say please use good risk management and stops but this especially applies to highly volatile names like AMC.
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