- AMC shares join SPCE in aiming for the moon.
- Movie theatre jumps a lucky 13% on Monday to $13.68.
- Shares boosted by retail sentiment and a possible switch from crypto.
AMC shares are powering up for another tilt at the moon on Tuesday. AMC surged 13% on Monday in a hugely impressive move. The shares had earlier flirted with key support at $12.22 and just about held that area, bottoming out at $12.17. The shares then took off for the moon and closed at $13.68.
Here is a little backstory in the highly unlikely event you are new to the AMC story. AMC is a global cinema chain and, as a result, has struggled during the global pandemic as most of these cinemas have been closed for the better part of a year. The company narrowly avoided bankruptcy through the interest of retail traders. By strongly backing it, these retail traders allowed AMC to raise capital and debt, meaning it could survive the pandemic. AMC is not out of the woods just yet, but it has now got a decent cash pile. AMC does have a decent debt pile now as well, so it needs continued support from moviegoers.
AMC stock forecast
The moon may be a bit of a stretch, but focusing on the technical chart may provide answers. AMC's share price exploded out of the triangle formation FXStreet had identified. The first breakout target of $12.22 was duly captured and is now the key level to hold to maintain the bullish trend. The RSI (Relative Strength Index) and CCI (Commodity Channel Index) had shown overbought signals on May 19. This overbought signal and failure to break $14.54 resistance led AMC shares to retrace lower. Importantly though, AMC held the line around this $12.22 level. The period of stabilization has seen the RSI and CCI retreat to more normalized levels allowing for Monday's powerful move. Once again the key resistance at $14.54 is in sight. AMC is holding nicely above the 9 and 21-day moving averages, and the short-term trend is clearly bullish. If it takes out $14.54, it really is heading to the moon – if the moon is at $20, that is. Breaking $12.22 puts AMC in a more neutral position. It is not until $8.95 that AMC would look more bearish.
| Support | $12.22 pivot | $10.49 trendline | $8.95 | $8.31 | $6.38 200-day |
| Resistance | $14.54 | $17.25 | $20.36 | to the moon! | mars and beyond! |
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