AMC Entertainment (NYSE:AMC) stock is currently trading around $5.64 per share.
The movie theatre stock had fallen below $4 just weeks ago but has risen above main support levels again.
AMC stock is up approximately 2% on Monday morning despite low trading volume.
We’re also seeing short interest in AMC Entertainment stock dropped from 22.10% to 21.96%.
Could this explain why we’re seeing small gains early this week with very low volume?
And will AMC stock continue to go up this week?
Let’s dive into some quick technical analysis that will allow us to identify where the stock may go short-term.
AMC Technical Analysis Today
AMC Entertainment stock is currently consolidating around $5.64 per share.
A break above this level may send AMC to retest $5.82 per share during any day this week.
Beyond the $5.80 level is $6.16.
However, if AMC fails to break above the consolidating level of $5.64, we can expect to see AMC stock drop and retest its major support level of $5.55.
Short sellers closing small positions or heavy buying volume from retail investors will carry the momentum towards the upside.
The weekly MACD shows us buyers are in control and indicators show no signs of slowing buyers or big sellers stepping in.
Rejection at $5.80 could mean more consolidation for AMC.
But as we’ve seen in the market time and time again, any whale may step in to either buy or sell the stock, contradicting what chart patterns are signaling.
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AMC’s cost to borrow continues to rise.
In the past, we’ve seen how important this data has been regarding major price runup.
Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.
The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.
AMC has approximately 179.25 million shares on loan as of the publication of this article.
Hedge funds are paying 135% annually on these loans.
This translates to $241.9 million per year, or $20.16 million per month.
Related: Breaking AMC Stock News
Follow AMC’s short interest here
I publish AMC’s, along with GME, MULN, BIOR, APE, LUCID, and other tickers short interest here.
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