AMC Entertainment Holdings Inc (NYSE:AMC) shares are trading lower Monday amid overall market weakness as stocks across sectors fall on COVID-19 pandemic concerns and issues in China.

Investors might be interested in the fact that about 60% of the volume for the last 30 days has been traded by institutions over the dark pool, compared to 40% on lit markets, and with only 8% of that 40% being traded on the NYSE. According to Finviz.com, the percentage of shorts still in the stock is more than 20%, with a float of 448 million putting the amount of shorted shares at over 90 million.

AMC was down 8.85% at $40.29 on Monday at market close. 

AMC Daily Chart Analysis

• The stock looks to be attempting to bounce off support in what technical traders call a pennant pattern.
• The stock saw a push higher and now is consolidating between narrowing highs and lows. It may continue to trade within the pattern of support and resistance until the stock sees an above-average volume day and can break out.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) saw a slight dip Monday and now sits at 43. This means that the stock has seen slightly more selling pressure than buying pressure in the past few days.

See Related: Why AMC Shares Are Falling

What’s Next For AMC?

Bulls (or should I say apes) are looking to see the stock bounce off pattern support and continue to trade above it. If support can hold the stock may continue to rise to where bulls would like to see the stock break above pattern resistance and shoot higher. If shorts begin to cover their shares, the stock could see a short squeeze and a large bullish run

Bears are looking to see the stock fall below pattern support in the next few days. If this pattern support is broken, there is always a chance the stock could see a further push downward.

Photo: Shruti via Flickr