AMC Entertainment stock is nearing a major demand level as share prices continue to decline.
The stock closed at $8.58 on Thursday after hitting a low of $8.30 on the intraday chart.
Volume on Thursday fell below the average of 46.3 million by 20.9 million.
But AMC is treading a fine line as the high $8 and low $9 levels have proven in the past to be a strong support for the stock.
Breaking below $8 could send the price to test a high demand level around $6.50 per share.
In this article I’m going to explain what shareholders should look out for in the next coming weeks.
Let’s get started!
Momentum levels are on the brink of reversing
If you’ve watched one of the latest videos on my channel regarding the TTM Squeeze indicator, then you know all about the massive impact this indicator is signaling.
The TTM squeeze indicator is an indicator that signals heavy buying or selling momentum.
When AMC began to run up before ultimately hitting its all-time high of $72 per share, we see this indicator was already predicting heavy bullish momentum.
The TTM Squeeze indicator is the chart at the very bottom whereas the top is AMC’s price action.
Dark green shrinking candles indicate the stock is on the brink of losing momentum and often times serves as a sell indicator.
We see that as the dark green momentum candles shrunk, AMC’s price action is followed by a massive crash.
Now let’s take a look at what happened when the TTM Squeeze indicator switched from bullish momentum to bearish momentum.
As the indicator transitioned from bullish momentum and began to show signs of bearish momentum, we can see AMC had a drastic drop in share price.
The TTM Squeeze indicator predicts big moves ahead.
A new transition is in play
So where is AMC today?
AMC is actually in a period where bearish momentum has begun to die out, leaving room for buyers to takeover.
It makes sense as AMC’s share price is hovering just above key levels of support, which have also been known as high demand levels.
Below you’ll see the TTM Squeeze indicator shows bearish momentum has completely gone out on the weekly timeframe.
The transition from red to green momentum candles will signify big moves lie ahead for AMC Entertainment stock.
But we’ll need one or two of these weekly timeframe momentum candles to serve as confirmations.
If these candles break through, then it’s a clear indication AMC is on track for some massive price action.
What’s on the other side of the coin?
If AMC fails to establish this momentum through buying pressure, short sellers will be able to take over once again.
AMC’s share price would further plunge, and that would be an article for another time.
But for now, the transition towards bullish momentum seems much more likely.
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