AMC Entertainment Holdings Stock News and Forecast: Why does AMC stock keeps falling?
- AMC stock falls nearly 3% on Thursday as equity markets turn lower on rising rates.
- Speculative stocks and sectors suffer the most as Nasdaq drops 2%.
- Fed Chair Powell sets up a series of rate hikes that high debt companies such as AMC will not like.
AMC stock (AMC Entertainment) closed at $16.86 on Thursday for a loss of 2.77% on the regular session. Stocks were under pressure from a series of hawkish central bankers as both Powell and ECB Chief Christine Lagarde spoke at an IMF event. The scale of their hawkish thinking surprised markets and saw equities turn lower as bond yields spiked. Just a primer for those not familiar, hawkish central bankers or commentary is that which favours rate rises or tightening financial conditions, while doveish ones are the opposite, favouring lower interest rates and looser central bank policy. So as a company carrying quite a lot of debt, AMC will suffer from higher interest rates.
AMC Stock News
AMC did get some excitement going early on with talk that an investing club had recommended buying the stock, but that really was about as good as it got for AMC stock as it slid lower for most of the session. Things are not looking much better to end the week as AMC is down again in Friday's premarket, and US futures are pointing to a lower open on Friday. Yields remain high, which will hurt growth, tech and stocks with high debt burdens. I know this may be a bit more macro-oriented than perhaps a typical AMC stock forecasting, but right now it is probably the main driver of the market.
AMC Stock Forecast
Clearly we had the Hycroft Mining (HYMC) inspired spike up to $34.52. Failure to break the strong downtrend line at $34.60 was the first warning sign, and then the huge doji candle was the next major clue. The logic here is simple in a doji. The closing price is much, much lower than the intraday high. A clear sign of falling momentum. This type of doji candle is one of our key signs of falling momentum and trading AMC stock is pure momentum nothing else. Knowing when to get in and out is key. After this doji candle, we had eight down days in a row! Now AMC stock has stabilised and the downtrend in the short-term frame has come to an end. The risk reward is now steady with little impetus to trade either way. Overall, as we can see the big picture is negative, but short term we have reached stability.
AMC stock chart, daily
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.
