Should You Buy Or Sell AMC Stock Right Now? The Fundamentals, The Chart Action, And The Fund Ownership Metrics All Point To The Same Conclusion:

amc stock

AMC stock was trading at $2 per share when the year 2021 began, but on June 2 of that year it reached an all-time high of $72.62 per share, breaking all previous records. Going to the cinema is once again becoming an enjoyable and thrilling experience. But can it compete with the almost mind-bending action that AMC Entertainment has delivered in recent years? 

On the year 2022, the drama that has been playing out in the stock market today has continued.

On August 22, shares dropped, which prompted a temporary suspension in trading due to news that was considered to be a market circuit breaker. AMC (NYSE:AMC) dropped as much as 42% to a session low of 10.46 and dropped below the 50-day moving average, which is an indication that the stock is becoming weaker. On their first day of trading on the New York Stock Exchange, the preferred stock units of the business were represented by the ticker symbol APE.

On August 15, holders of AMC’s class A common shares were each given one APE in exchange for one share of AMC that they possessed. The management of AMC made it very obvious to the company’s shareholders that the “APE-split,” as it is commonly referred to, would have an effect on AMC shares.

Since that time, AMC stock has remained in a difficult position.

Since the sell-off on August 22, the price of AMC has dropped by as much as 47%. Since the share price dropped to a new multiyear low of 5.47, gains have been restricted. On a daily chart, the share price has been trading at a level that is unacceptable for leading growth stocks since it is below its quickly declining 50-day moving average.

During the spring and summer of this year, the outlook for the stock appeared to be more positive. After reaching a new low near 10, a significant psychological price level, AMC embarked on a tear in the month of May. In addition, stock prices made a bullish move across the longer-term 200-day moving average for roughly two weeks during the month of August.

To put it another way, AMC’s short-term activity had been the most optimistic it has been since the middle to the beginning of September 2021.

However, given the current circumstances, do you think it’s time to lock in any leftover profits? After all, the rally that took place in May of 2021 had characteristics of a climactic run.

Or is there a purchase it now option?

This article takes a look at the fundamental, technical, and fund ownership criteria to evaluate if the Leawood, Kansas-based firm with 950 theaters and 10,600 screens has a decent chance of making stock traders additional money.

Should You Buy AMC Stock Now Or Wait Until 2022? Or A Sell?

The current price of AMC is 91.0% lower than its all-time high of 72.62, which was reached on June 2, 2021. Therefore, at the current price level, it does not yet trade at an entry point consistent with an IBD strategy. Those who are interested in going long should keep an eye out for the formation of a new bullish chart pattern.

This story from four months ago mentioned that it might take some time. Due to the steep decline in the stock price, AMC will require several weeks, if not several months, to begin constructing the bullish side of that new base.

The chart for AMC exhibits the fundamental components of an extreme double bottom. A technical buy mark was established at 34.43 when the middle peak of 34.33, which stood in between the original low of 12.90 in the middle of March and the week that concluded on May 13, was reached. However, AMC is not even close to being in a position to move beyond that entry. In addition, the price action has been extremely volatile recently, which goes against the characteristics of a solid base.


Featured Image: Megapixl © Rafaelhenriquepress

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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.