The AMC share price has been rallying in August. It ended the month 8.77% higher at $47.13. The stock has jumped more than 22% since the start of August. AMC is the world’s largest movie theatre chain. It has a total market capitalization of £24.19 billion.
AMC Price Action
Just like most movie theatre chains, AMC has had a tough ride since the start of the year. The stock is trading 35% below its highest level this year. However, it has skyrocketed more than 2653% since the year started.
In July, AMC reported better than expected results for the second quarter. The company’s quarterly loss inched lower to $0.73, which was lower than the estimated $0.93 loss. Its quarterly sales inched higher to $444.7 million, surpassing analysts’ estimate of $375.3 million.
Still, the company has a long way to recovery. The company’s fixed costs were a slowdown to its recovery during the pandemic when business came to a halt. However, with the reopening of theatres, the company is hopeful that it will reap some benefits from its fixed costs.
Investors are optimistic about the AMC share price in the next few months. The successful vaccination rollouts, alongside the bringing back of blockbusters to studios, might be a turning point for the stock. However, high debt levels remain a major challenge for the AMC stock.
AMC Technical Forecast
The AMC share price has been on a strong rally since mid-August. It has been hovering above the key support at $40 for the past week. It was trading 0.80% higher in pre-market trade.
On the two-hour chart, the stock has moved above the 25 and 50-day exponential moving averages. It has also moved above the 50-day moving average, hinting at a bullish outcome.
Therefore, the AMC share price is likely to continue trading higher as bulls eye the next key resistance at $50. However, this view will be invalidated if the stock moves below the support at $36.35.