AMC Entertainment Stock Flirts With Golden Cross: Investors Hope For Blockbuster Rebound After Q2 Flop

AMC Entertainment Holdings, Inc. AMC has had a wild year, with its stock plunging 88.44% over the past year and 18.30% year-to-date.

The stock's volatility was fueled by a mix of company-specific news and broader market events, including the return of Keith Gill, known as "Roaring Kitty," in June. His disclosure of a substantial position in GameStop Corp GME reignited interest in meme stocks, with AMC quickly finding itself back in the spotlight.

AMC’s Financial Struggles, Q2 Silver Lining

The rollercoaster continued as AMC reported its second-quarter financial results. The company posted a loss of 43 cents per share on revenue of $1.03 billion, marking a 23.5% year-over-year decline.

CEO Adam Aron attributed the slow start of the quarter to Hollywood's strikes but highlighted a strong finish driven by the success of Disney's "Inside Out 2."

June 2024 proved to be a high point for AMC, with the company recording its highest-ever June Adjusted EBITDA. Momentum carried into July, thanks to blockbusters like “Despicable Me 4” and “Deadpool & Wolverine.” Aron remains optimistic, pointing to extended debt maturities and a promising slate of releases through 2026 as key factors that could stabilize AMC's financial footing.

Also Read: AMC Stock To ‘Remain Volatile’ After Q2 Results: Analysts Praise Market Share Gains, Caution On Balance Sheet

Technical Indicators Hint At A Golden Cross

Chart created using Benzinga Pro

On the technical front, AMC's stock might be on the verge of a Golden Cross — a bullish signal that occurs when a short-term moving average crosses above a long-term one.

Currently, the stock is under moderate selling pressure, with its price of $5 sitting below key moving averages like the 8-day SMA at $5.02 and the 200-day SMA at $5.18.

Chart created using Benzinga Pro

Despite the bearish signals, the RSI is nearing oversold territory at 48.91, suggesting limited downside. The MACD indicator at -0.01 hints at a possible shift in momentum, while the Bollinger Bands (25) show AMC trading near its lower band, which could present a buying opportunity if the stock stabilizes.

Roaring Kitty's June revival added fuel to the AMC fire. As the stock flirts with a potential Golden Cross, investors might find this a critical juncture—either as the setup for a blockbuster rebound or another twist in AMC's ongoing drama.

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