The AMC share price is down 1.41% this Friday in premarket trading. This follows Thursday’s 7.43% drop as the stock wiped off two days of gains. The decline puts the AMC share price on course to close out the week 11.14% lower. This puts the AMC share price on the path of a third weekly decline and down 22.15% for September.
WallStreetBet stocks are having a mixed day, but the AMC share price looks to continue the downtrend, even as US markets are poised to open lower after the Fed’s inflation barometer came in higher than the market expectations. The increase in the Core PCE Price Index to 4.9% (consensus 4.7%) on an annualized basis strengthens the case for further rate hikes and puts more pressure on US stocks.
Recently, AMC Entertainment stated that it had sold 425 million preferred equity units via an equity distribution agreement with Citigroup. The proceeds will be used for repayments, refinancing and repurchasing the company’s indebtedness, and general corporate purposes. The sale appears to have been the trigger for the recent downside move.
AMC Share Price Forecast
The active candle is testing the 7.03 support line. A breakdown of this pivot targets the 6.07 support level (11 May 2022 low). If the bears continue their unopposed action at this support level, the 5.27 support level (12 April 2021 low) becomes the new downside target.
Further price deterioration brings the 4.58 support (10 June 2020 high and 4 March 2021 low) into the picture as an additional downside target. The 9 February 2021 low at 3.24 is an additional harvest point to the south, which is presently not viable.
This outlook is negated if the bulls force a bounce on the 7.03 support. This allows the bulls to force the action toward the 7.99 resistance mark. There is another target at 8.66 if there is clearance above the 7.99 barrier. If 8.66 is breached, the 10.26 resistance mark (22 August and 15 September 2022 highs) forms an additional target to the north.
AMC: Daily Chart
