AMC Share Price Set for Major Decline If Rising Wedge is Broken

Summary:

The AMC share price cpuld see a major decline if the rising wedge on the daily chart is taken out by bearish action.

The AMC share price is down 5.36% as of writing, as selling interest took hold of the stock in Tuesday’s trading session. After posting three days of gains, the AMC share price hit a wall of resistance at the $51.25 mark, prompting a round of profit-taking on the stock.

Citigroup had earlier posted a “Sell” recommendation on the stock at the start of the month, even as the company has had to take on a lot of debt to maintain solvency during the worst of the pandemic. AMC received huge buying interest as one of the WallStreetBet stocks earlier in the year. However, it is still struggling to attain the highs seen in June.

AMC Price Forecast

The AMC share price forecast looks at the picture on the daily chart, where the AMC share price is
undergoing a corrective decline from following the doji and rejection at the 51.25 resistance (23.6% Fibonacci retracement level).

The rising wedge needs a breakdown of its lower border to complete the pattern and open the door towards 43.11 and 36.77, in that order. 29.80 would represent an additional pivot which only enters the picture if the price decline takes out the completion point of the measured move at 36.77.

On the other hand, a break above 51.25 places the evolution of the pattern in jeopardy and brings 55.00 (6 July high) into the mix. 60.00 and 64.40 are additional barriers to the north, whose attainment nullifies the bearish expectations from the pattern.