AMC Stock Looks Like It Might Fade Back Toward Support

AMC Entertainment Holdings Inc. AMC shares are trading lower Wednesday, as many meme stocks are dropping lower today. The stock looks to be taking a breather and may need a bit of time before it catches up again.

AMC Entertainment is down 3.2% to $35.79 at publication time.

AMC Entertainment Daily Chart Analysis

• The stock looks to have possibly fallen below support in what technical traders call a pennant pattern. The stock condensed between narrowing highs and lows before it dropped below the lows and started to head lower.
• The stock may now fall toward a level where it once found support before near the $30 level. If the stock doesn’t see above average volume, it may continue to fade lower until possibly seeing a bounce near the $30 level.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may act as a place of resistance, while support may be found near the 200-day moving average.
• The Relative Strength Index (RSI) has been falling lower and now sits at the 37 level. This shows that the stock has seen more selling in the past few days than buying.

What’s Next For AMC Entertainment?

Bullish traders are looking to see the stock bounce back and trade within the pennant pattern once again. Bulls would then like to see the stock head higher and break above pattern resistance for a possible strong bullish push to happen.

Bearish traders would like to see the stock fall toward the $30 level. Bears would like to see this potential support level be unable to hold. If this happens the stock could follow with a stronger bearish push.