AMC Stock Price Surges 27% After $230million Share Sale

AMC stock price is up this Tuesday after AMC Entertainment Holdings Inc announced a capital injection of $230 million. 

According to the announcement, this capital injection came from a sale of 8.5million shares to Mudrick Capital. Proceeds of this share sale will finance investments into theaters in time to benefit from resurgent demand as restrictions on social events are lifted across the US.

AMC stock price has gained 1,370% in 2021, with share sales yielding nearly $1.35 billion. AMC was one of the stocks that WallStreetBets pumped in the trade war between retail and institutional investors in which the former triumphed. 

Dwindling fortunes in the cryptocurrency market have set traders’ attentions back towards the stock market, with so-called meme stocks seeing new demand. AMC stock price is up 23% on the day as of writing.

Technical Levels to Watch

Tuesday’s bounce came off the 29.80 support following the downside gap open. The stock now looks set to target 36.77 initially (current all-time high), with potential upside targets at 39.70, 43.94 and 46.47 (61.8%, 78.6% and 88.6% Fibonacci extension levels).

On the other hand, a rejection at the 33.73 or 36.77 resistance areas could lead to a pullback that targets 29.80 initially. Below this level, 28.00 (psychological support) and 24.19 could become additional downside targets, along with 20.08. 

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AMC Stock Price; Daily Chart

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