Bearish AMC stock forecasts are returning to the market, and this is evident in the heavy correction from the double bottom’s upside move seen on Tuesday and Wednesday. Thursday has brought a 2.42% uptick, but this move lacks conviction and has stalled at the 13.32 resistance barrier.
The recent upside that was seen following the double bottom pattern could be ascribed to market enthusiasm with the second part of the 1986 hit movie, Top Gun. Tom Cruise reprised his role as Pete “Maverick” Mitchell.
Top Gun: Maverick smashed Memorial Day box office records, pulling in a record $153 million during the Memorial Day Weekend. Consequently, shares of AMC Entertainment Inc popped higher as 5 million moviegoers savoured the movie at domestic cinemas over the four-day weekend. This figure was more than twice last year’s tally of 2.1 million.
However, the enthusiasm surrounding the movie has died out as the stock fell more than 10.6% on Wednesday. Will the stall at the 13.32 resistance impact AMC stock forecasts despite Thursday’s uptick?
The rejection at the 16.07 resistance completed the measured move from the double bottom of 12 May and 24 May at 10.26. The rejection broke below the pattern’s neckline at 13.32, and the attempted return move has also been rejected at that point. This scenario indicates a high probability for the bears to resume the correction, targeting the 11.96 support (23 May high).
Below this level, the 10.26 support housing the troughs of the double bottom pattern will emerge as the new targets to the south. A breakdown of 10.26 opens the door toward 8.35, continuing the prior downtrend.
On the flip side, a break above the 13.32 resistance creates access to the 14.81 resistance barrier (6 May high). Above this level, additional resistance will be seen at the 16.07 price mark, and at the 18.00 psychological price area (21 April). 19.08 and 21.03 are additional price targets to the north.
This post was last modified on Jun 02, 2022, 17:28 BST 17:28