AMC Entertainment Holdings Stock Forecast: Strong opening for AMC apes
- AMC shares power 6% higher on Monday as apes in charge.
- Bears had tested the key $40 level on Friday but AMC held firm.
- $48 is the next key resistance to accelerate the move higher.
Update: AMC shares pop 3% immediately from the open on Tuesday as the apes march on and target the next resistance at $48. Just another 10% higher a mere blip for AMC stock. At the time of writing another 1% ahs already been added on with the stock now trading $45.22 up over 4%.
AMC shares popped more than 6% on Monday as the apes rallied after a strong defense of the $40 key support on Friday. AMC stock had looked to be in trouble on Friday as investors and traders took some risk off the table ahead of the Jackson Hole meeting with Fed Chair Powell due to speak. However, Powell gave another masterclass in keeping the market happy, and with risk back on the table stocks pushed higher and AMC went along with the overall trend.
We had identified how important $40 was to AMC as this is where it broke out from. A breakout can retrace but must not break the initial breakout level, or else the bullishness is over. AMC did retrace, which only serves to strengthen the bullish argument.
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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
"To the moon" has been a favourite phrase of the new retail trader and AMC lover and once $48 breaks then certainly AMC should see a pretty decent blast-off. Volume thins out until nearly $60 so the message to apes is clear break $48 and see what happens. Momentum creates momentum especially in meme stocks such as AMC, so any breakout tends to attract fear of missing out traders to the show who serve to accelerate and extend a trend. Not saying it is a good thing but that has always been a feature of markets, it just seems to have increased now that everyone carries a powerful PC in our pockets. We have to trade the environment around us and this is where we are, like it or leave it. Around $60 we would expect the move to slow, as there is plenty of volume up there and so more of an equilibrium zone.
As mentioned, $40 is the key to hold, a break of this level and then it's waiting time until $30 before thinking of getting long again. A word of caution on $30, the volume thins out dramatically below, so if that breaks then the move could be swift to $16.
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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.
