AMC Share Price: Stock resumes free fall as meme stocks tumble

NYSE:AMC continued on its bearish downtrend on Thursday, as the broader markets digested a surprise spike to the weekly jobless claims. Shares of AMC plummeted by 8.68% to close the trading day at $37.24. The bad news for shareholders? AMC’s stock tumbled right through the 50-day moving average which the stock used as support in previous sessions. Now that the short-term support has been broken, AMC could continue to fall in the near-term until another level of support is found. Shares have now lost nearly 50% of its price since the all-time high of $72.62 in early June. 

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It wasn’t a great showing for meme stocks on Thursday, as the entire industry dropped once again. The short squeeze efforts by retail investors have noticeably trailed off, as the daily trading volume of AMC hit 92 million shares on Thursday, compared to the recent daily average of 171 million shares. Fellow meme stock GameStop (NYSE:GME) fell 3.58% and closed the day at $178.85. Like AMC, the stock is trading well below its 50-day moving average, although meme stocks have not really been abiding by the normal laws of technical analysis. 

AMC stock forecast

Mask mandates are making a return around the country including a full fledged one in California, as the COVID-19 delta variant cases are on the rise. This of course has a direct effect on AMC, as further restrictions could see movie theaters shut down once again. This was evident in the market on Monday, when rising cases were the trigger for a one day sell-off that the markets finally recovered from.