Can AMC stock comeback extend beyond $20?
- AMC stock rose slightly on Tuesday amid renewed optimism on the Russian-Ukrainian front.
- AMC Entertainment had hoped for a rebound on the back of a strong Batman box office.
- Shares of the movie giant are expected to rebound on Tuesday as yields at risk.
Update: AMC Holdings is trading at $15.66, up 2.96% in the last hour of trading, as Wall Street managed to turn green following some bullish headlines from the Russian-Ukrainian front . Humanitarian corridors were opened on Tuesday for cities such as Sumy and Mariupol. Also, Russia announced another corridor for Wednesday, which will allow the evacuation of Kiev, Kharkiv and other cities. But the headline that spurred the latest surge in risk appetite came from Ukraine, as the country declared it would no longer seek NATO membership.
It’s hard to predict how things will continue from now on, because if war-related worries eased further, attention would shift back to rising inflationary pressures and central bank responses to them. The United States will release February inflation figures next Thursday, and the annual figure is expected to have hit 7.8%, a multi-decade high. Meanwhile, falling demand for security has pushed government bond yields higher, with that of the 10-year US Treasury note currently at 1.87%, up twelve basis points in the daytime.
Previous Update: Holy Purse, Batman! AMC Holdings stock fell short of its third-best opening weekend since the start of the COVID-19 pandemic. Shares of the popular cinema chain fell 5.5% in the first half hour of trading on Tuesday, but recovered to -0.5% after an hour of trading. AMC stock is trading at nearly $15 per share. Again, the Nasdaq is having another bad session and is down 0.8% right now after Monday’s 3% drop. Over four million tickets were sold last weekend for AMC’s latest hit The Batman. The Caped Crusader movie grossed some $258 million from Thursday to Sunday. In the United States, AMC said it achieved an above-normal market share of 29% over the weekend.
AMC stock gave up some premarket gains as the market declines. Previously, European markets had been strong thanks to a joint debt issuance proposal, but now things are turning bearish again. AMC CEO Adam Aron said Monday night that using cryptocurrency is good for AMC Entertainment and that the company may consider launching its own crypto in the future if things go well. . He also said that they would stay very far on the right side of the law when it comes to crypto regulation. AMC shares are now trading at $14.96 for a loss of 1.7%. Previously, AMC shares were up more than 1% in Tuesday’s premarket.
AMC stock fell sharply on Monday as investors continued to exit high-risk names as oil soared and commodity prices remained in orbit. The outlook for the global economy has deteriorated significantly and high-growth stocks such as AMC have taken a disproportionate hit. In the current environment, any highly leveraged security will take a bigger hit as interest rates are expected to rise, but growth is expected to slow. A US recession is approaching as the US yield curve is dangerously close to turning negative.
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AMC Stocks News
Investors, AMC traders – or monkeys as they like to be called – started Monday in high spirits as weekend box office numbers for Batman proved encouraging. However, AMC traders couldn’t stem the global bearish tide, and the stock was well beaten at the end of Monday. AMC stock closed at $15.21 for a loss of 8.2%. But Tuesday brings slightly more encouraging signs with slightly more optimistic tones of Russian demands on Ukraine, which has allowed risk assets to recover some ground. We would again expect a disproportionate rebound this time for AMC, and the stock should see a healthy gain at the open on Tuesday. We doubt this will hold for much longer than a few days as the overall sentiment remains bearish.
AMC Stock Forecast
AMC is bearish below $21.04 and is likely to remain in a long-term downtrend. The goal is to get back below $10. $14.54 is the next key support. A breakout will likely cause AMC stock to accelerate lower.
AMC stock chart, daily
Tuesday should see a recovery in risk sentiment. We are already noticing that safe-haven buying of bonds and dollars has faded and everything has weakened on Tuesday. This should see higher risk assets. The first step is to hold $14.54. This prepares the day for a green day. $16.62 is the next level to target for AMC and finds resistance against Friday’s volume profile. Once above $17.20, volume eases, meaning a breakout to the $18 test is possible. $18.20 is strong resistance and will be hard to break.
AMC 15 minute chart
Previous update: AMC stock gave up some premarket gains as the market declines. Previously, European markets had been strong thanks to a joint debt issuance proposal, but now things are turning bearish again. AMC CEO Adam Aron said Monday night that using cryptocurrency is good for AMC Entertainment and that the company may consider launching its own crypto in the future if things go well. . He also said that they would stay very far on the right side of the law when it comes to crypto regulation. AMC shares are now trading at $14.96 for a loss of 1.7%. Previously, AMC shares rose more than 1% in Tuesday’s premarket.