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.
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.
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.
This post was last modified on Jun 23, 2023, 13:11 BST 13:11