AMC Stock: Will AMC Entertainment Change the Game In 2023?
AMC stock price has exhibited a bearish trend, relinquishing gains and slipping below key moving averages. Despite a brief breakout above the $50 trendline, the momentum was short-lived as bears took control, leading to a subsequent decline. Buyers failed to maintain momentum, resulting in unwinding positions and subsequent stock price slippages.
AMC Shares Plunge After Share Offering and Reverse Split
AMC’s shares dropped by 70% after the company issued more shares to convert its preferred shares (APEs) into common shares. The company also did a reverse stock split to avoid delisting and low prices. The company raised a lot of cash with its share offering, which it plans to use to improve its business. Wedbush upgraded its rating on the company and set a target price of $19. The company also won a court case that removed a lot of uncertainty. AMC’s shares still have strong support from retail investors, but face risks from regulation, competition, and volatility.
AMC Stock Continues to Slide as Bears Dominate the Market
The downtrend of AMC stock has persisted, marked by lower highs and lower lows. The upper trendline has acted as a barrier to exiting the trend, as sellers maintain an advantage and continue to establish short positions.
At the time of writing, AMC Entertainment stock was trading at $13.15, experiencing an intraday loss of 3.30%. The stock broke below the 200-day EMA, underscoring bearish sentiment. Intraday trading volume also showed a decline compared to the 10-day average volume. AMC Entertainment’s market cap stands at $2.083 Billion.
AMC stock has witnessed a decline over the past seven days, with a decrease of -18.15% in its price. Meanwhile, for AMC Entertainment (NYSE: AMC) stock, its 52-week price range has fluctuated between $107.50 and $10.72. This snapshot of recent performance offers insights into the price dynamics and market trends impacting AMC Entertainment stock.
AMC Stock Forecast: Analyst Price Targets For AMC Stock
Five analysts gave their 1-year price targets for AMC stock. The highest price prediction was $36.09, which is +178.67% above the current price. The lowest price estimation was $4.00, which is 2.56% below the current price. The average price target was $13.31, which is 2.32 below the current price.
Source: Tradingview
When we look at the analyst ratings, 8 analysts rated AMC Entertainment stock in the past three months. 0 analysts gave a strong buy rating, 4 gave a hold rating and 4 gave a strong sell rating. However, the majority of the ratings were on the sell side.
Analyzing AMC Price Technical Indications
Source: AMC.NYSE by TradingView
AMC stock is currently below the 50-day and 200-day SMAs, although these levels are attempting to provide resistance. If AMC can hold above $13, there’s potential for price recovery to targets of $20 and $28. Falling below $13 could lead to support tests at $11 and $10.
MACD indicator displays a bearish scenario, with the MACD line crossing below the signal line, suggesting impending further decline. RSI is at 27.22, within the oversold zone, and the 14-day SMA crossing below the median line indicates a bearish signal.
Conclusion
Technical indicators reinforce the bearish outlook for AMC Entertainment stock. MACD, RSI, and EMA indicators emphasize negative signals, aligning with the ongoing downtrend. Price action reflects a bearish sentiment in the 1-Day timeframe. Investors and traders need to wait for any directional change before taking the next move.
Technical Support and Resistance level
Support levels: S1 = $20. and S2 = $28.
Resistance levels: R1 = $11 and R2 = $10.
Disclaimer
The research delivered in this article is for informative and educational purposes only. Do not depend on this information as financial, investment, or trading recommendations. Investing and trading involve risk. Please consider your circumstances and risk forbearance before making any investment conclusions.
