AMC Sees Big +87% Gains After Hours on Friday

AMC Entertainment (NYSE:AMC) saw big gains upwards of +87% after hours on Friday; will shares keep rising next week?

Shares of the movie theatre company reached $8.76 after hours after closing at $4.40 intraday.

AMC stock ended up closing at $7.17 after hours, a 62.95% gain.

News came out Friday that Vice Chancellor Morgan T. Zurn rejected a nine-figure settlement that would have let the conversion proceed while handing out extra stock to mitigate the impact on ordinary shareholders. 

APE shares fell more than -14% on the announcement as common shares of the company surged.

“AMC has been eager to convert the APEs and issue additional shares as it contends with rising interest rates that have complicated its loan financing.

The ruling, which defied the expectations of investors and analysts, sends the case—and the company, which is anxious to recapitalize—back to the drawing board,” says Bloomberg Law.

Friday’s rally has created a big mess for short sellers rolling over options into next week.

Incredibly, technical analysis shows us that AMC Entertainment stock is not done stretching its legs.

Will AMC stock go up on Monday?

Here’s what technical analysis is showing.

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”AMC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]

Will AMC Go Up on Monday?

There is strong indication in my chart that shows bullish momentum for Monday’s trading day.

Here are a few things to note and look out for.

Price action is currently trading above the EMA200 signifying strength towards the upside.

The 1-minute chart, 5-minute chart, and 15-minute chart all indicate strong projections above the three Moving Averages.

The Relative Strength Index (RSI) also shows us bullish sentiment.

While both the MACD and TTM indicate transition towards the downside on the 1-minute, higher minute timeframes still show strength towards the upside.

Will AMC stock continue to surge on Monday?

The strength according to the charts is there, but we also have to keep an eye on AMC’s support and resistance levels.

We saw rejection at $8.76 as well as resistance at $7.80 and support at $7.04.

If AMC is able to break above $7.80, it’s highly probable the stock retests $8.47 and $9.12 or above.

However, if pricing breaks below $7.04, it’s likely price comes back down to $4.30.

But I’m curious to hear your thoughts on this.

Do you think AMC Entertainment will continue to rise next week or do you think it will be targeted by bigger sell orders?

Let me know what you think in the comment section of the blog down below. Have a great weekend everybody.

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