AMC Pops Higher Following Record-Breaking Weekend: A Look At The Technicals

AMC Entertainment Holdings, Inc AMC was popping up more than 3% in the premarket on Tuesday after a big bullish day on Monday saw the stock surge 7%.

The theatre chain had its largest revenue-generating weekend of the year over the Easter long weekend and that Saturday represented its highest revenue day since AMC began reopening its theatres in 2020.

Movie titles including "The Super Mario Bros. Movie," " Air," "Dungeons & Dragons: Honor Among Thieves" and "John Wick: Chapter 4" brought in a record number of moviegoers.

The news helped propel AMC higher, where the stock wicked down from to close at $5.24. Bullish traders want to see AMC pop up above the $5.50 mark on Tuesday, which would indicate the possible downtrend the stock fell into on April 4 was a bear trap.

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The AMC Chart: Although AMC negated its uptrend by printing a lower low on April 4, a new downtrend hasn’t yet been confirmed by the creation of a lower high. If AMC can pop up above $5.50, the possible downtrend will be averted, and a new uptrend could form.

• On Monday, AMC printed a bullish Marubozu candlestick with a slight upper wick. The candlestick leans bullish and traders will want to see continued momentum to the upside on high volume to indicate the bulls are in control.
• The second most likely scenario is that AMC begins to trade sideways to consolidate Friday and Monday’s big move north. If that happens, the consolidation will lean bullish for a continued move higher over the next few days.
• Bearish traders want to see big bearish volume come in and push AMC down under the $5 mark, which would suggest Monday’s high-of-day is the next higher low within the downtrend.
• AMC has resistance above at $6.33 and $7.47 and support below at $5.23 and $4.31.

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