AMC (NYSE: AMC) stock price has been in a downward spiral due to last week’s APE conversion. However, after such a brutal sell-off, many analysts are expecting at least a relief bounce from a major support level. The stock of the theatre company closed last week at $12.43.
Since August 17, AMC shares have lost 66% of their value. The reason behind such a brutal crash is the court’s nod for APE stock conversion. As a result, the stock is trading 84% below its yearly peak, and the bears seem to be in complete control.
Why Are AMC Shares Falling?
Last week was one of the biggest losing weeks for AMC. The shares of the entertainment company plunged by 65.45% as the investors rushed to sell before Thursday’s APE conversion. The bearish pressure persisted even after the conversion, and stock fell more on Friday.
On Monday, AMC stock price fell another 3.82% in pre-market. At press time, the shares were changing hands at $11.96, which is the lowest level since January 2021. The stock also underwent a reverse split on Thursday, which reduced the supply by a factor of 10: 1.
AMC Stock Price Forecast
Technical analysis of NYSE: AMC reveals that the stock has fallen into a major demand zone, which goes back to 2020. The $10.5-$12 region has caused multiple bullish reversals in the past. While the higher timeframe AMC stock price forecast still looks bearish, it is logical to expect a relief bounce from the current level.
In case of a bounce from this demand zone, bulls may target the $16.60-$19.40 price gap. The Relative Strength Index (RSI) has fallen to 23.62, indicating that the stock is oversold. However, I won’t be putting money on AMC after such a brutal sell-off.
In the meantime, I’ll keep sharing updated AMC analysis and my personal trades on my Twitter, where you are welcome to follow me.
