- Summary:
- AMC Stock Forecast: Technical analysis suggests, NYSE: AMC may soon retest its $3.85 support. It is already 50% down from yearly highs.
AMC (NYSE: AMC) stock price is looking very bearish as the price is having another red month. On Thursday, the shares of AMC Entertainment Holdings, Inc. tanked 7.95% as they fell to their lowest level since April 6, 2023. The latest analysis reveals there is still at least another 8% downside for the stock.
On Thursday, the US stocks generally showed a positive sentiment as the benchmark indices closed in green. The S&P 500 index gained 16 points in the penultimate trading session of the week. However, the AMC stock opened lower and closed with a 7.95% loss.
AMC Vs APE Tug Of War Continues
Since the launch of AMC Preferred Equity units (APE), there has been a tug-of-war between both assets. As AMC stock plunged 7.95% on Thursday, a 7% positive surge was observed in APE stock. This has been the case since August 2022.
AMC stock price remains in a downtrend despite a pause in rate hikes by the US Fed. Consequently, the stock is currently trading more than 50% below its yearly high, which was made in February 2023, and there are still no signs of any reversal.
AMC Stock Price May Fall Below $4 Soon
The NYSE: AMC chart shows that there is a major support around the $3.85 level on the chart. In the coming days, I expect the stock to retest this support level which may result in a relief bounce. A break below this level will make AMC stock forecast extremely bearish.
After yesterday’s sell-off, the Money Flow Index is signaling a bullish divergence, while the Relative Strength Index (RSI) stands oversold. This suggests that the bears may run out of fuel in the coming weeks. For the stock to gain a proper bullish outlook, it needs to break above $10.
In the meantime, I’ll keep sharing updated AMC stock price forecast and my personal trades on my Twitter where you are welcome to follow me.
