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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Recent News
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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About The Author
Frank, I messed up, but on your next letter I will join to helps support your articles and the good work you do . As far as AMC , I gave up. We Retail are NOW fighting our own CEO
plus shorts. Notice all the CEO’s recently joining in to fight illegal activity . Wes Christian has proof along with Itel I forgot who that there are a Count them BILLION shorts on Ape
and has informed Mr. Popcorn ( AA ) and he could care less. He so far has not joined the fight, WHY ? He has made at Least 3 to 4 moves to hurt AMC Retail, ( Not my Opinion Facts ) so at this point I am hoping for a run
to hopefully $30.00 before he Bullshits us and says the yes votes won on a 10 to 1 reverse split . If that were to happen I would still be losing my ass .How stupid of me to trust him and invest more than I should have. But , I have learned a lot , like when insiders sell get out. ( Just like AMC insider recently sold ) it’s not good . Like Adan Aron sold twice both times he killed our momentum. Once at $72.00 our all time high, and then again at $30.00 both times we were going up and both times when he sold we went down. Not to mention how wonderful APE worked out for us, it took at least $7.00 away from AMC stock price and went straight down to .66 cents before stopping. They know more than we do ,and they are selling. You don’t have to be a rocket scientist to understand
what that means. I think we all know recently an AMC insider sole his shares I want to say it was 100,000 shares but I can’t remember exactly the amount . I think you Frank would remember or maybe someone else remembers , Curious if anyone out there including you Frank think that is good news?
Let’s start a discussion! Leave your thoughts below.