The stock of AMC Entertainment Holdings (NYSE: AMC) is showing good strength amid a recent sell-off in the US equities. The stock of the American entertainment company seems to have entered into a bearish consolidation after facing strong selling pressure in the past few months.
American stocks are in a slump due to the expectations of prolonged economic tightening. Even if the Federal Reserve doesn’t hike rates further, most analysts expect the rates to remain high for a long period.
The benchmark indices, the Nasdaq 100 index and the S&P 500 index, have seen a major correction in the last two weeks. Both indices are down 1.06% and 1.08% this week as the fear prevails on Wall Street.
The recent news of a writers’ strike deal was touted to be bullish for AMC Entertainment Holdings by the company’s CEO. However, the stock hasn’t shown any significant price action since then.
Due to the prevailing bearish outlook, Citigroup has adjusted its AMC stock price target from the previous $15.5 to the current $4.75. The change in the outlook from the financial giant comes at a time when NYSE: AMC is down 89% from its yearly peak.
AMC is known to be a very volatile stock. Since the breakdown below the $10.75 support level, the price action has remained sideways. However, there has been a significant increase in the daily trading volume which is visible on the following chart.
AMC stock price prediction is unlikely to flip bullish unless the price breaks above the $10.75 level again. Nevertheless, the company has a very strong community of holders, which expects the bearish outlook to end soon.
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This post was last modified on Sep 27, 2023, 13:40 BST 13:40