AMC’s Preferred Equity (NYSE:APE) shares soared more than +21% on Monday.
Investors are puzzled by the opposite for AMC Entertainment (NYSE:AMC) shares.
AMC stock fell nearly -10% on Monday despite the company’s positive path to debt elimination.
APE is currently up more than +94% this year-to-date.
Shares began to rise ever since the announcement of APE converting back to common shares of AMC stock.
At the same time, a proposal for a 1-for-10 reverse stock split for AMC shares had surfaced.
But shareholders continue to accumulate shares of AMC’s Preferred Equity despite a strong possibility of a conversion.
APE’s trading volume surged to more than 60 million on Monday, up more than 32 million from its daily average.
Will APE Shares Keep Rising?
APE shares are in an uptrend.
If APE is able to break the $2.43 level, we can expect shares to continue rising and retest $2.65, then $2.80 and eventually $3 per share.
However, if buyers slow down and sellers begin to take over, we may see rejection at $2.43 and share prices may come back down to $2.17 or lower.
APE’s chart is showing strong bullish sentiment and the possibility of shares continuing to rise is far stronger than the latter.
But I’m curious to know what you think.
Have you been buying APE stock recently?
Leave a comment down below.
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About The Author
I sold the 4 strike puts on AMC , and was paid around $215 per contract . If they put the stock to me , my cost basis is $1.85 per share !
April Puts
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