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High volatility in AMC Entertainment Holdings Inc stock price on Tuesday which ended trading at $32.04

StockInvest.us, 1 year ago

AMC Entertainment

The AMC Entertainment Holdings Inc stock price gained 22.66% on the last trading day (Tuesday, 1st Jun 2021), rising from $26.12 to $32.04. During the day the stock fluctuated 17.53% from a day low at $28.53 to a day high of $33.53. The price has risen in 6 of the last 10 days and is up by 129.68% over the past 2 weeks. Volume fell on the last day by -185 million shares and in total, 475 million shares were bought and sold for approximately $15.23 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

B. Riley does not see either upside or downside right now giving AMC "Buy - Neutral" on their last update on May 26, 2021. The price target was set to $16.00.Over the last 30 days, this security got 1 buy, 0 sell, and 1 hold ratings.

The stock has broken the very wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $19.99, a level that may pose a second chance to hit a runner. According to fan-theory $27.51 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

AMC Entertainment

The AMC Entertainment Holdings Inc stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $20.92 and $12.64. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, April 12, 2021, and so far it has risen 271.69%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

On the downside, the stock finds support just below today's level from accumulated volume at $26.52 and $26.12.With no support from accumulated volume below today's level the risk is increased, as a drop below the support at $26.12 may give a huge drop in the stock price.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $5.00 between high and low, or 17.53%. For the last week, the stock has had a daily average volatility of 34.12%.

The AMC Entertainment Holdings Inc stock is extremely overbought on RSI14 (91). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

AMC Entertainment Holdings Inc holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy Candidate to a Hold/Accumulate candidate.

Check full AMC Entertainment forecast and analysis here.