AMC (NYSE: AMC) stock price has tanked to historic lows. The shares of the theatre company are experiencing an unprecedented sell-off and are making new lows every day. If the stock doesn’t reclaim a key level, it may enter into a long bearish accumulation phase.
On Monday, AMC shares bounced in the pre-market hours. At press time, the shares were changing hands 3.8% above their previous close. After a strong sell-off, the stock is now trading 90% below its yearly peak, which suggests that the bears are in complete control.
Many meme stock investors are looking to find the bottom of AMC stock to buy for the long term. It is worth mentioning here that there are no reversal signals yet, and buying the stock now could be like catching a falling knife. However, there is still a silver lining, which we’ll be discussing later.
Smart traders sold their shares way before the APE conversion as they already saw it coming. This left the retailers with heavy bags and massive unrealized losses. While there is still some hope for recovery, the broader market outlook doesn’t appear to be supportive at the moment.
At this point, it is needless to say that the AMC stock price forecast is looking very bearish. The following NYSE: AMC chart is quite self-explanatory. $10.75 is the most critical level on the following chart. If bears fail to reclaim this level soon, it may keep dropping even more in the coming months.
The final hope for the bulls is the bullish divergence, which is developing on the Relative Strength Index (RSI) indicator. These divergences usually develop close to the market bottoms. This also suggests that the bears are losing momentum after orchestrating a cataclysmic drop.
In the meantime, I’ll keep sharing updated AMC shares and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Sep 11, 2023, 10:33 BST 10:33