Will AMC Entertainment (NYSE:AMC) stock go up or down this week?
The stock has been setting higher highs and higher lows this first quarter of 2023, but AMC recently broke below its rising trendline.
AMC Entertainment stock is up more than +48% year-to-date but saw gains upwards of +110% last week.
The movie theatre company is currently in a grey area where investors are being given the option to vote on a reverse stock split and conversion of APE equity back into AMC common shares.
Regardless, AMC stock technicals are showing us big probabilities pointing price towards a particular direction.
So, will AMC stock go up or down this week?
Let’s dive into the charts.
Related: AMC CEO Adam Aron Hints at Destroying Short Thesis
AMC Technical Analysis
AMC Entertainment broke its upward trend when price fell below $6.60.
The stock is currently testing another upwards channel at a support level around $5.70-$5.85 (yellow support level on chart below).
There are three major probabilities here.
- AMC stock bounces from the current support (yellow line) and tests $6.80 (blue line above) before either breaking above it to retest $8.50 or rejects it and hits support (yellow line) again. The strength of buyers or sellers will determine whether the wedge breaks above or below the trend.
- Another possibility is we see AMC Entertainment stock break below its current support level (yellow line) and retest as low as $3.90-$4.00 per share. Volume on Wednesday was twice is average so unless buyers step in, this could be the higher probability in the coming days.
- The third scenario is we see AMC stock have a clean bounce from its current support level (yellow line) and break above $6.80 and $8.50. A break above $8.50 will send the stock to test $9.10, then $10.30. A break above $10.30, which will require a lot of buying pressure send AMC Entertainment stock to $11, $14, and $18+ without warning.
Which probability is stronger?
A head and shoulders pattern has formed which is a bearish technical analysis pattern.
Often times, we see share prices tumble when this pattern presents itself.
However, it’s still important to keep in mind that the other two probabilities are still very valid.
The overall macro picture shows us AMC is still in an upwards channel as it sets higher lows and higher highs.
But I’m curious to hear your thoughts on where AMC is going.
Leave a comment down below.
Related: What is The Likelihood of AMC Squeezing Any Time?
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All I know is that I’m getting tired of ppl guessing !
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