AMC share price looks set for a slightly lower open this Monday, ahead of the release of its earnings report after market hours.
AMC Entertainment Holdings, a WallStreetbets darling stock, continues to feature in the battle between retail traders and institutional trading firms. The latest battle now looks set to occur after Financial Times reported that Odey Asset Management, a London hedge fund, had taken a short position on the stock. This brings to at least three, the number of hedge funds known to have taken contrarian positions to Wallstreetbets’ retail traders. Apart from Iceberg Research in July, the third hedge fund to have shorted AMC is James Hanbury, which says that the positioning of retail investors had created significant distortions that provided a compelling short opportunity.
The numbers from the earnings call could decide who wins this round of the battle for AMC’s share price action.
Following the high of 2 June, the AMC share price has been in a sustained correction that found support at the 61.8% Fibonacci retracement at 30.10. Since then, the AMC share price has traded in the range of 30.10 (floor) and 36.77 (50% Fibonacci retracement) as the ceiling. The earnings numbers could determine which direction the price could hit.
A breakdown of 30.10 allows for a drop to 24.19 (28 May low), with the 27 January high at 20.08 and 18 May high at 14.59 serving as additional downside targets.
Conversely, a break of 36.77 opens the door towards the 38.2% Fibonacci retracement level and 7 July low at 43.34. Above this level, 50.00 (8 July high and psychological resistance) and 51.54 (14/22 June highs) mark potential price barriers to the north.
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