AMC Entertainment Holdings Stock Price and Forecast: Why is AMC going to the moon?
- AMC shares keep on squeezing, surging nearly 9% on Tuesday.
- The meme stock is due to break key $48 resistance level.
- The entertainment giant stock broke the key $40 level and has not looked back since.
The move keeps on going for AMC shares, which have traded perfectly from a technical setup, as retail traders show they look at charts as well as movies. The move was started by the break of $40, which had held the range for most of the summer. Some technical indicators began to perk up on the bullish side, and this created momentum to bring more buyers in to keep the move going. A short squeeze has been mentioned as one of the main reasons, but it is the continuing focus on key technical levels and how to squeeze positions that are more impressive.
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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
We can see from the volume profile on the chart below why we want AMC to keep going and breach $48. The volume profile shows that, once through, it gets easier for bulls or AMC apes to keep the party bull bus going all the way to $58 where volume picks up again. The momentum oscillators are all pointing in the right direction, helping to confirm the trend and the Moving Average Convergence Divergence indicator has pushed into a bullish crossover. The level to hold is still $40, as this keeps AMC bullish. Premarket indications are good with AMC already printing at $48.30, so it seems like more attention is being gained from Tuesday's move.
The Refinitiv social media sentiment monitor below shows the spike in attention:
The daily chart below shows a dip in volume above $48 meaning a break should accelerate. Volume has also been increasing on a daily basis but has yet to hit the peak from the breakout on August 24, so we have more room for new volume to enter and keep the momentum going.
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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.
