Tag: AMC Theatres (Page 1 of 3)

AMC Nears High Demand Levels: What to Watch For

AMC Bullish
Market News: AMC TA indicates bullish momentum is near

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.

Watch this quick clip on YouTube – Subscribe for more content and updates.

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.

TTM Squeeze indicator - AMC Stock
TTM Squeeze indicator – AMC stock

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.

Related: How to Invest in the Stock Market for Beginners

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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Is AMC’s Comeback Just the Beginning?

AMC makes a strong comeback
Market News: AMC makes a strong comeback

AMC Entertainment closed at $24.81 on Tuesday after trading volume surpassed its average volume of 46 million by 25.5 million.

The movie theatre chain peaked around $26 per share before retesting the $24 and $25 levels intraday.

Shareholders are anticipating even larger price action after AMC’s dividend is distributed.

Is this just the beginning for AMC Entertainment?

Is a much more aggressive share price on the way?

Let’s discuss it.

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Apes get amped for APE

APE stock is on its way.

Every AMC shareholder is going to receive an equivalent amount of ‘AMC Preferred Equity’, aka APE, for every AMC share they hold.

The initiative is part of the company’s strategy which will allow them to raise capital and pay off some debt.

The value of AMC’s share price will be split in half with APE, but shareholders are determined strong buying pressure will send both stocks to the moon.

Investors will have until Friday the 19th to lock the deal and should see the new security in their broker accounts by Monday the 22nd.

The AMC community is certain many people won’t receive the dividend due to the vast amount of naked shorting that has occurred in AMC stock.

Many have contacted their brokers to ensure they will indeed be receiving the dividend on the promised date.

Failure to deliver the dividend would mean big trouble for financial institutions and more than likely a share recall, annihilating short sellers and likely triggering a short squeeze.

While the theory is not far-fetched and actually quite logical, brokers should be able to meet the demand.

Only a few days left until time may tell.

Momentum is building

Last year AMC Entertainment stock hit an all-time high of $72 per share and shareholders are confident the share price will surpass this amount this year.

Today we’re seeing AMC climb back out of the hole it was dragged to when the markets began to drastically pull back.

AMC is showing strong bullish sentiment again which explains why its volume has been exceeding its daily average.

The movie theatre stock will have to break its yearly downtrend above the $27-$28 levels if it’s to go berserk again.

Fortunately, it’s very possible.

But momentum is key.

It was momentum that pushed AMC stock from $2 per share to $20 per share in January of 2021 and it was momentum that also pushed the stock from $14 per share to $72 per share in June of last year.

The stock is currently respecting the mid-$20 levels which shows heavy interest in the movie theatre chain.

Will retail investors be successful in taking AMC to the next level?

I certainly think so.

But it won’t be easy as institutions continue to borrow millions of shares to short the stock.

The suppression is still there which means the momentum will have to be much greater.

Is this the beginning of the end for AMC?

Retail investors rushed to buy AMC stock in January of 2021 to squeeze short sellers and make a lot of money, similar to what occurred with GameStop at the time.

AMC had a high short interest and still does to this date, making it possible to still squeeze short sellers in 2022.

So, say retail investors manage to squeeze shorts and profit from a new all-time high.

Will this be the end for AMC?

I don’t think so.

Not in the way some might think.

See, AMC Entertainment is still a growing company whose improved their fundamentals for almost two years straight.

The century old movie theatre chain has introduced NFT collectibles, shareholder incentives, and movie theatre exclusives and innovations.

Whether AMC goes through another massive price runup, a short squeeze, or MOASS, it’s always going to be that legendary ‘meme stock’ company that kicked Wall Street’s ass.

AMC won’t ever be over, because the community won’t be over.

I’d love to hear your thoughts – leave a comment at the bottom section of the blog.

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