- AMC shares power 6% higher on Monday as the monkeys are in charge.
- The bears had tested the key $ 40 mark on Friday, but AMC held on.
- $ 48 is next major resistance to speed up the move.
AMC stocks rose more than 6% on Monday as the monkeys rebounded on Friday after a strong defense of key $ 40 support. AMC stock appeared to be in trouble on Friday as investors and traders took some risks off the table ahead of the upcoming Jackson Hole meeting with Fed Chairman Powell. Powell gave another master class to keep the market happy, however, and at the risk of stocks being back on the table, stocks rose and AMC followed the overall trend. We had realized the importance of $ 40 to AMC as that was the starting point. A breakout can recede but must not break the initial breakout level or the bull market is over. AMC only pulled back to bolster the bullish argument.
AMC key statistics
| Market capitalization | $ 22.3 billion |
| Price / yield | |
| Price / sale | 3rd |
| Price / booking | |
| Enterprise value | $ 36 billion |
| Gross margin | -0.74 |
| Net margin |
-3.15 |
| 52 week high | $ 72.62 |
| 52 weeks low | $ 1.91 |
| Average Wall Street rating and target price | Sell $ 5.44 |
AMC stock forecast
Up to the moon was a new retailer and AMC lover’s favorite phrase, and once the $ 48 mark is broken, AMC could certainly see a pretty decent explosion. Volume is thinning to nearly $ 60 so the message to the monkeys is clear, break the $ 48 and see what happens. Momentum creates momentum, especially in meme stocks like AMC, so any breakout creates fear of missing out on traders who are designed to accelerate and prolong a trend. We’re not saying it’s a good thing, but that has always been a characteristic of the markets, it just seems to have increased since we all had a powerful PC in our pockets. We have to deal with the environment around us and here we are, like it or leave it. As always, please practice careful risk management and use stops. At around $ 60, we would expect the movement to slow down as there is a lot of volume up there and thus more of an equilibrium zone.
As mentioned, $ 40 is the key to holding, a break from it and we would, in our humble opinion, wait until $ 30 before considering getting long again. A word of caution at $ 30, the volume is dramatically thinning down below. If that breaks through, the move could be quick to $ 16.
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