The AMC stock price is surprisingly resilient and bouyant above $40.00. Will an increase in short exposure lead to another nasty shock for the bears?
AMC Entertainment Holdings inc (NYSE: AMC) started the week with a bang. The stock gained $3.30 to finish Monday’s session at $40.29, higher by 8.92%.
For a while, it appeared that AMC was on the verge of breaking down. After reaching an all-time record of $72.62 in June, the AMC stock price had been trending lower. Which culminated in the stock declining almost 57% to $31.15.
However, in the last seven trading days, AMC has clawed back almost $10, gaining 30% along the way.
Interestingly, and maybe worryingly for the sellers, the short interest has increased by 6% over the same period.
On the 21st I reported that AMC had a short position totalling 75.84 million shares. Today that number is just short of 80 million.
So could that lead to another squeeze?
Looking at the daily chart, a clear descending trading channel is evident. The lower end of the band is seen at $30.80 and was responsible for reversing the decline earlier this month.