- AMC shares continue to slip with another red day on Monday.
- Tech and growth did stage an intraday turnaround on Monday, but memes are unloved.
- AMC is about to slip below $20 for the first time since May 2021.
AMC Entertainment (AMC) stock continues to slide despite an intraday reprieve for tech and growth stocks on Monday. Rising yields and interest rate expectations have been the early theme so far in 2022, and growth stocks are suffering as a result. Meme stocks belong in their own category, but many are high growth or hopeful high growth names and have suffered accordingly as 2022 kicks off.
AMC stock news
AMC registered a modest loss for Monday by closing at $22.78 for a loss of 0.9%, but it is the continuing slide that has traders and investors worried. The short interest in this one did see social media get behind the short squeeze idea as 2022 kicked off, but this time there was no power or momentum – a case of all talk but no action. This is not a good sign for meme stocks. AMC is already down 16% for 2022 and nearly 40% over the last three months. Despite record box office takings for the latest Spider Man flick, the stock remains mired in a downward spiral.
AMC chart, 15-minute
AMC stock forecast
The break of $34.60 back in December was the real problem and signified the slowing momentum. Meme stocks, as we have repeatedly said, are all about momentum. We know it is not a value trade or that the fundamentals do not add up, but that does not matter for short-term trading. The play is momentum: knowing when to jump in and, more importantly, jump out.
2022 is looking like it will be much tougher for short-term traders, so shot selection is key. We still have some hope of a potential double bottom at $21. Double bottoms are powerful reversal signals, so watch that level carefully. The trend is indicating it should break as AMC trades below the 9 and 21-day moving averages, and the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are negative. But Monday's intraday turnaround may create some momentum for the tech space, which could then filter across to some meme names. $21 is the short-term pivot, a break will likely lead AMC to $14 and below. Hold and $30 will be the upside target.
AMC chart, daily
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