AMC Entertainment stock is respecting the $6 level of support very well.
The stock rejected a breakout towards the downside five times on Tuesday.
While the stock did end up below $6 on Wednesday, it began moving back towards the support level after hours.
AMC closed at $6.04 on Thursday.
Is a massive AMC rebound underway now that AMC has proven a strong support level?
Let’s discuss it!
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SPY Rallies on Thursday
The S&P 500 rallied on Thursday sending the entire markets up with it, including AMC Entertainment stock.
SPY rallied from $348.12 to a high of $367.51, a $19 jump!
Traders who cautiously warned about today’s possible volatility in the market following CPI announcements were caught off guard as SPY was pumped.
But AMC’s spike up to $6.28 was only temporary.
The movie theatre chain stock hovered above and below the support level of $6 per share throughout the day until market close.
Still, the market hasn’t been able to completely knock AMC Entertainment stock to ground levels.
Is it possible AMC has hit the bottom?
We’ll need to keep a close eye on how the theatre chain stock performs as the markets continue to bleed.
What we do know is that AMC Entertainment’s current stock price has held relatively well in the past prior to the massive run to $72.
Retail investors were able to inject the century-old company with so much liquidity that it drove the stock’s prices up while instilling institutional investor confidence.
Will retail investors be able to replicate the trading activity from last year?
Time will certainly tell.
Will Stocks Keep Falling?
Despite the SPY’s bullish rally on Thursday, it’s very likely that the market continues its downward trend as the Fed prepares to announce bank earnings on Friday – which so far have not looked too great.
This means that AMC will likely follow for now until the market begins to reverse.
It seems as if the economy is preparing for heavier announcements, which will undoubtedly affect the entire market.
AMC will have a rebound, but not until big buyers are ready to step in and enter the market again.
Unfortunately, retail investors cannot control the situation.
It’s important to pivot during this state of economic downturn our country is facing.
Large cap companies have announced the firing of several employees and Bank of America has stated that the U.S. economy will start losing 175,000 jobs per month in late 2022, early 2023.
The announcement of a recession seems inevitable, but it doesn’t mean retail investors should be a part of it.
Learning how to pivot will be key to your success in today’s shifting economy.