AMC Stock Price Prediction: $40 Pivotal for Future Price Action

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Written By: Mircea Vasiu

Jun 07, 2021, 10:53 BST 10:53

Summary:

AMC stock price remains well bid while above the rising trendline. Only a move below $40 spells trouble for the AMC, as bulls appear to be in control.

The AMC stock price is on a rollercoaster recently. The market price action is not for the weak ones, with volatility reaching extreme levels.

So far, the $70 area acted as strong resistance, as the price was rejected twice from it. Also, the $40 level acted as support and acts as a pivotal level for the period ahead. Only a move below the $40 would put pressure on the meme stock, as it will find buyers as long as the support level holds.

Last week, the news that AMC aims at selling 25 million more shares in 2022 led to a market dip. Yet, from a technical perspective, the price action remains constructive as long as the rising trendline remains intact. Also, the series of higher lows points to further upside potential, should the $40 level hold.

AMC Technical Analysis

Both bulls and bears have something to trade here. On the one hand, bulls may want to go long on a move toward the confluence area given by the horizontal and dynamic support. In doing so, they need a stop at $30 and a target at a new all-time high. On the other hand, bears may want to wait for a close below $40 before going short with a stop at the previous lower high and targeting a risk-reward ratio of 1:2.

AMC Stock Price Forecast

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Written By: Mircea Vasiu

Mircea, MBA in International Business graduating Magna Cum Laudae, trades for a living and contributes to various financial publications for more than six years. He writes about macroeconomics, stock indices, currencies, and most recently ETFs and individual stocks. For the past decade, he’s involved in everything trading related, mostly in the currency market, both with manual and algorithmic trading.