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AMC Stock Price Eyes Major Upside After Breakout Confirmation

AMC stock (NYSE: AMC) price is showing a significant recovery this week. After a 21% drop last week, the shares are up 6.25% this week. The technical analysis reveals that the ongoing bounce has the potential to take stock much higher.

On Tuesday, US stocks experienced strong selling pressure. The S&P 500 and the NASDAQ 100 both indices closed the day in red. AMC shares remained very volatile throughout the day and closed the day with a 0.80% loss. On Wednesday, the stock slid 3.63% in the pre-market.

Is NYSE: AMC A Good Buy?

AMC stock was facing strong selling pressure before the court’s decision on APE stock conversion. As the court ruled against the conversion, AMC stock surged. However, the positive price action was short-term, and the shares dipped below $5 once again.

The latest bounce in AMC comes amid strong box office collections by the recently released movies Barbie and Oppenheimer. Due to this reason, analysts are expecting the theatre chain to report good earnings on August 8. As per the company, it had the ‘best week’ ever in July after the release of two hit movies.

AMC Stock Price Forecast Turns Bullish

As visible on the following NYSE: AMC chart, the stock price has bounced off the 50-day moving average. The key moving average is mentioned as a green line on the chart. It is also quite evident that the price has also retested the trendline after the breakout.

Due to this confirmed breakout, AMC stock price forecast is looking very bullish. In the coming days, the price may retest July 2023 high, which lies above $6. The invalidation of this setup will be a breakdown below the 50-day moving average, which currently lies at $4.59.

In the meantime, I’ll keep sharing updated AMC analysis and my personal trades on my Twitter, where you are welcome to follow me.

AMC stock chart