AMC Gets Squeezed Out Of Pennant, Moves Higher: A Technical Analysis

AMC Entertainment Holdings Inc. AMC is moving up Thursday as traders try to squeeze the stock higher.

AMC reported earnings Thursday, with a loss of $1.42 per share missing the analyst estimate calling for a loss of $1.26 per share. The company reported quarterly revenue of $147.4 million, below the analyst estimate of $153.61 million. AMC also reported the completion of a 43-million-share offering, raising $428 million in additional equity capital. 

AMC shares were trading 26.21% higher at $13.02 at last check.

Related Link: What’s Going On With AMC Entertainment Today

AMC Daily Chart Analysis

• AMC looks to be breaking out of what technical traders call a pennant pattern.
• The stock crossed above the 50-day moving average (green) Thursday, and trades above the 200-day moving average (blue), indicating sentiment in the stock looks to be turning bullish.
• The price may find support near each of these moving averages in the future.

Key AMC Levels To Watch

• The stock looks to be nearing the end of a pennant pattern. The price has been condensed between narrowing highs and lows and could be ready to break out soon.
• The Relative Strength Index (RSI) is nearing the overbought range of 70-100; the RSI sits at 63.53 at last check. The last time the stock broke out, it entered well into the overbought range.
• When the stock first broke out it saw rising volume. Another thing to take note of is the rising volume occurring now.

What’s Next For AMC?

Bullish technical traders would like to see the stock break out of the pennant pattern and see an upward move. Bulls would like to see the volume continue to rise and the RSI to move higher to potentially see another breakout.

Bearish technical traders would like to see the stock break out of the pattern to the downside. A cross below the line connected by the lows may bring about a large dropoff.

Related Link: AMC Options Traders Jump Into Short Squeeze Potential