AMC Entertainment Holdings (AMC) Stock News and Forecast: Where is AMC headed?
- AMC stock failed to break the 200-day moving average last week.
- AMC looks doomed as the stock retraced below $30 on low volume.
- Holiday box office numbers set records but AMC cannot find fresh momentum.
AMC shares have slid back below $30 in a further continuation of last week's failure to breach the highly significant 200-day moving average. December 21 saw AMC take a run at the key moving average but since then it has been steady selling pressure as AMC momentum has waned. AMC needs momentum to keep itself elevated at current levels. Its share price is in the realm of fantasy, perfect for Christmas time but not great for value investors. This is momentum trading, pure and simple and it had been working well. But once momentum wanes it can be very hard to reestablish. AMC has been in a long term downtrend since June with only the occasional spike to liven things up. January may see another fresh spike as retail investors will try one more pump on the anniversary of the GameStop (GME) rally but sequels are rarely as good as the original.
AMC has been losing momentum and is down nearly 20% in the last month as we can see below. This is a volatile name and the middle chart shows AMC losing 11% in the last week alone. The big picture remains a powerful downtrend from the summer spike. Our third chart does show how well momentum plays can work in extreme cases such as this.
-637763735155893376.png)
AMC chart, hourly
-637763735636113655.png)
AMC chart, 15 minute
-637763736037485097.png)
AMC chart, daily
AMC stock news
With the holiday season in full swing, the latest reports show holiday attendance remaining strong despite fears over omicron. AMC has also recently reached lease deals to reopen some Chicago and LA theatres. "AMC Theatres (NYSE:AMC), the largest theatrical exhibitor in the United States, in Europe & the Middle East, and in the world, today announced it has reached lease agreements and plan to reopen theatres in the Los Angeles and Chicago markets. AMC is expected to begin operations at AMC Northridge Fashion Center 10, formally a Pacific theatre, in Northridge, Calif., in the spring of 2022. AMC expects to begin operations at AMC Chicago 14, formally an Arclight location in NEWCITY located in the Lincoln Park neighborhood, under a new name in spring of 2022".
AMC stock forecast
Failure at the 200-day remains a problem that will need to be corrected if bulls want to go on a charge. The recent good news in terms of the record box office for Spiderman and the above-mentioned reopenings have failed to generate enough momentum. Repeated and prolonged failure to break the 200-day will see a break below $20. The 9 -day moving average is providing some consolidation and this is the short-term pivot point $28. Consolidating here and another attempt at the 200 day can be tried, currently $33.
Declining RSI and it being below 50 is a problem but so far the MACD has not confirmed this. Look for one to confirm the other to signal the next major move. Either the RSI spikes to confirm the bullish MACD or the MACD crosses to confirm the failing RSI.
AMC chart, daily
Like this article? Help us with some feedback by answering this survey:
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
