The AMC share price is rising this Tuesday after the entertainment company registered losses that were not as bad as earlier feared.
AMC Entertainment posted a narrower loss than expected, incurring an adjusted loss of $0.71 per share compared with a $5.44 loss per share it sustained in the same period a year before. Analysts had predicted a loss of $0.96 per share.
As clients returned to cinemas worldwide following the continuing global vaccination program, revenues surged from $18.9 million to $444.7 million year-on-year (consensus of $382.1 million). So far, the retail traders who are bullish on AMC share price are winning, but not at the finish line yet as the price confronts a key resistance.
Tuesday’s upside gap has met resistance at the 36.72 price mark (50% Fibonacci retracement level). This resistance needs to be uncapped for the price to aim for 40.00 initially (10 June/27 July lows), before 43.34 (38.2% Fibonacci retracement and 7 July low)
becomes an additional target to the north.
On the flip side, 29.80 could face a retest if the price is rejected at 36.72. Additional pressure on that price level opens the door towards 24.19 (28 May low), before 20.08 (28 January high) comes into the picture as a new pivot to the south.
Follow Eno on Twitter.