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AMC Stock Price: Will AMC Face A Bullish Breakout?

Published by
Crispus Nyaga

The AMC stock price jumped more than 7% earlier on Monday. AMC is the world’s largest movie theater chain and has the largest share of the US theater. Its total market capitalization currently stands at £18.35 billion.

AMC Stance

The resurgence of the coronavirus underpinned by the Delta variant saw cinema chains shut down in a bid to curb the virus spread. However, with the easing of lockdown restrictions, most cinema chains have been struggling to recover, albeit at a slower pace.

The AMC share price has jumped more than 11% and more than 22% since the start of August. In July, AMC reported better than expected results in the second quarter. The company reported a quarterly loss of $0.73, beating analysts’ consensus estimate of a loss of $0.93. AMC also reported quarterly sales of $444.7 million, which surpassed the consensus estimate of $375.3 million.

More notably, AMC reported that its available liquidity is more than over $2 billion. AMC CEO Adam Aron commented, “We raised yet another $1.25 billion of new equity capital (before commissions and fees) in the quarter, boosting our quarter-ending liquidity to more than $2 billion.”

Uncertainty over the covid-19 virus is still hovering among investors. However, Adam Aron seems optimistic about the company’s share price.

AMC Technical Analysis

The four-hour chart indicates that the AMC share price has been struggling to recover. The stock hit an intraday low of $34.40 before bouncing back to $37.00.

It is trading slightly above the 50-day moving average and below the 200-day moving average. The stock has found support along the 50-day exponential moving average.

Therefore, the company’s share price is likely to face a minor pullback in the next few weeks before bouncing back. If this happens, the next suitable target will be the resistance at the 200 DMA at $43.45. However, a move below the support at $30.00 will invalidate this view.

AMC Stock Price Chart

Crispus Nyaga

Crispus Nyaga is a self-taught financial analyst and trader with more than seven years in the industry. He has worked for some of the biggest brokers in Europe and Australia as an analyst, coach, and course creator. He has a wealth of experience in equities, currencies, commodities, and global macroeconomic issues. He has also published for prominent financial publications like SeekingAlpha, Forbes, Investing.com, and Marketwatch. Crispus graduated with a Bachelor’s of Science in 2013, an MBA in 2017, and is currently working on an MSc in Financial Engineering from WorldQuant University. When he is not trading and writing, you can find him relaxing with his son.

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Published by
Crispus Nyaga