AMC Entertainment Holdings, Inc AMC was trading slightly higher on Monday after confirming an uptrend Benzinga called out on Dec. 22.
The stock had fallen about 43% between Nov. 30 and Dec. 14 after breaking bearishly from a long-term triangle. AMC had been consolidating since reaching a June 2 all-time high of $72.62.
The stock has been pressured by a high level of insider selling, with executives, including AMC CEO Adam Aron, cashing out over $70 million in stock this year. On CNBC’s “Market Alert” on Dec. 20, Aron said he will be holding over $2 million worth of AMC shares heading into 2022 and receives 60% of his salary in stock.
During the interview, Aron said the mistake he believes analysts are making is that they are not taking into account the transformation AMC plans to continue making.
“We’ve already announced for example we’re dabbling with cryptocurrency; we’ve already announced our participation with three NFTs, which I think will have a distribution of about 700,000 NFT’s; we’ve announced we’re going into the $6 billion dollar home popcorn market and those are just some of the ideas that we have,” he noted.
Despite the big pullback and insider selling, hashtags such as #ApesTogetherStrong and #APESNOTLEAVING have continued to trend on social media. Aron is held in high regard within the Ape community as a figure who wants to take on the Wall Street elite head-on by communicating directly with shareholders.
On Dec. 23, Aron took to Twitter to say, “AMC and I are on the very forefront of the Democratization of Wall Street. Ten years from now, all CEOs will tweet.” He also indicated he will never forget 2021 for getting a nickname and the hilarious memes.
AMC stock may be gathering steam for another run higher as 2022 approaches because it has settled into a bullish pattern on the daily chart.
The AMC Chart: AMC may be setting up the right shoulder of a bullish head-and-shoulder pattern, with the left shoulder formed between Dec. 1 and Dec. 9, the head created between Dec. 10 and Dec. 21 and the right shoulder potentially about half-way printed. If the pattern is recognized, the measured move is about 50%, which indicates AMC could trade up toward the $47 level in the future.
On Monday, AMC was printing a bullish hammer candlestick on the daily chart, which indicates the stock may trade higher on Tuesday. If it does, the stock will break up bullishly from the neckline of the head-and-shoulder pattern, and bullish traders can watch for higher-than-average volume on the break to confirm the pattern was recognized.
AMC is trading above the eight-day exponential moving average (EMA) but below the 21-day EMA, with the eight-day EMA trending below the 21-day. If AMC is able to recapture the 21-day EMA as support and hold above it for a period of time, the eight-day will cross above the 21-day, which would be bullish.
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- Bulls want to see big bullish volume come in and break AMC up from the head-and-shoulder pattern. There is resistance above at $29.45 and $31.81.
- Bears want to see AMC continue to reject the neckline of the pattern and for big bearish volume to drop the stock down under a support level at $25.79. Below the area, there is further support at $20.36 and $17.07.
Related Link: AMC Giving Away Free NFTs: Here's How You Can Get One
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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