- Summary:
- NYSE: AMC Forecast: While the outlook on AMC stock price remains bearish, it may still have a short term relief bounce soon.
The stock of AMC Entertainment Holdings (NYSE: AMC) is trading at its all-time low after a 35% drop this month. I issued a dire warning when the stock broke down below the major support level of $10.75. After a short-term dead cat bounce, the bearish pressure continued, and the stock now stands 40% below that level.
The persistent selling pressure on AMC stock price comes despite a strong rally in the US stocks in the wake of cooling down inflation and the back to back pauses in rate hikes. However, the latest technical analysis reveals that the sellers are getting exhausted, and a relief bounce could be around the corner.
In the Q3 earnings report, AMC reported $1.41 billion in revenue which was well above the Wall Street expectations of $1.26 billion. However, the stock price still went downwards after the results.
You don’t have to be a wizard in the technical analysis to understand the following AMC chart. You can clearly see that while the price has made a lower low on the daily chart, RSI hasn’t hit the new lows.
This divergence may push AMC stock price toward the recently left price gap above $9.37. However, for the outlook to flip bullish, the price still needs to reclaim the $10.75 support.
