AMC Entertainment Holdings, Inc AMC Up more than 11% to start Monday’s trading session after the company announced it set a domestic record for the November opening of Black Panther: Wakanda Forever.
The company experienced its fourth-highest weekend of attendance in 2022, with more than 4.9 million moviegoers attending AMC theaters Thursday through Sunday. The company also said it had seen strong food and beverage sales.
AMC CEO Adam Aaron thanked the retailers on CNBC’s “Squawk Box” Monday for theater chain survival during COVID-19 pandemic. Of the group known as the monkeys, Aron said, “If it hadn’t been for them, we wouldn’t be here today.”
The “big-screen” multinational was on its way to bankruptcy early in the pandemic before retailers combined and drove up its share price, allowing AMC to raise $2.2 billion in equity in 2021, to keep the company afloat.
AMC has taken several actions to grow its business since the end of the pandemic, including declaring a special dividend in the form of APE or AMC Preferred Equity entities MONKEY.
On November 7th, AMC announced a partnership with Zoom Video Communications Inc ZM Convert some AMC locations in the US to Zoom Rooms.
The stock has struggled to hold its morning gains intraday as the 40% cumulative rally since Thursday suggests that consolidation is likely needed. This consolidation may come in the form of sideways movement or slightly lower prices before AMC gains the strength to potentially rally higher again.
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The AMC chart: Although AMC negated its downtrend on Nov. 10 by noting a higher high above the lower Nov. 8 high of $5.62, the stock has yet to make a higher low to confirm that an uptrend is in play is. Ultimately, AMC needs to pull back to print a higher low above the 52-week low of $5.05 made on Nov. 9.
- The retracement is likely to come in the next few trading days as AMC appeared to print a possible doji candlestick on Monday. When a Doji candle is created on an upward move, it can indicate that the temporary high is in place.
- Lower prices are also needed as AMC’s Relative Strength Index (RSI) is around 62%. When a stock’s RSI approaches or reaches 70%, it is overbought, which can be a sell signal for technical traders.
- Bullish traders would like the stock to consolidate sideways or slightly lower and potentially settle into an inside bar or bull flag pattern, which could indicate another rally is on the horizon. Bearish traders want to see big bearish volume and take the stock below the 50-day simple moving average, which could then act as a strong resistance.
- AMC has resistance above at $8.51 and $9.90 and support below at $7.46 and $6.33.
See also: Wakanda Forever! Black Panther sequel sets box office record in November, could it help give Disney stock a boost in the week ahead?