AMC Entertainment Holdings Inc. CMA shares traded lower on Wednesday on continued momentum as retail traders moved the stock. Over the past five sessions, AMC’s stock has moved from the $49.40 level to its most recent close of $33.43.
Below is a technical overview of the stock.
AMC Entertainment Holdings Daily Chart Analysis
- Stocks have been trading in a sideways channel and falling towards support over the past few weeks.
- The stock broke below the 50-day moving average (green) on Wednesday and is trading above the 200-day moving average (blue), indicating that the stock is likely entering a period of consolidation.
- The 50-day moving average may act as resistance, while the 200-day moving average may hold as a support zone.
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Top AMC Entertainment Holdings Levels to Watch
- The stock falls towards the support, potentially near the $20 level.
- The stock may find resistance near the $60 level if it is able to turn around and start rising.
- The Relative Strength Index (RSI) sits at 35 and has been falling for the past few weeks. Recently, there have been more sellers in the stock than buyers. If the RSI breaks below 30, it will enter the oversold zone.
What’s next for AMC Entertainment Holdings?
Bulls would like to see the stock bounce near support and start to rise. Bulls would like to see the stock start forming higher lows and head towards resistance. Eventually, the bulls would like to see the stock break through the $60 resistance.
Bearish traders would like the stock to not hold above the $20 level and start falling. If the stock can break below this level and the 200-day moving average, it could experience a stronger bearish push.
