AMC Stock: Will AMC Stock Price Hit the Fresh 52 Week Low?

• 1 AMC stock price fell 23.48% on April 4, 2023 whereas APE price surged 13.51%.
• 2 AMC stock witnessed a massive spike in the selling volume and prices closed near 52 week low.
• 3 AMC Entertainment (NYSE: AMC) agreed to settlement terms, opening up for APE conversion.

AMC stock price fell 23.48% after the company agreed to settlement terms opening for APE conversion. APE is AMCs preferred equity shares whose prices rose by 13.51% on a single day. AMC Entertainment (NYSE: AMC) will raise equity with the help of APE units conversion into the common stock. It will also help the company reduce the debt. 

AMC stock witnessed a massive spike in the selling volume and prices collapsed with a huge momentum. However, the downfall halted near the 52 week low which might act as an important demand zone for the bullish traders. 

AMC stock price closed the previous session at $3.91 with an intraday decline of 23.48% and market capitalization stands at $2.03 billion. In the previous week, there was a rumor circulating in the market that Amazon is planning to acquire AMC Entertainment which impacted the stock price. However, the price faced a hurdle at the 50 day EMA and failed to give the follow up momentum. Later, prices fell due to the news of the conversion of APE units and lost all the gains of the previous week.

Will AMC Stock Recover After APE Units Conversion?

AMC stock price is trading below the 50 and 200 day EMA showcase downtrend. However, the prices seem to be entering into the oversold zone and might trigger a short term relief rally from the lower levels. 

Presently, clear direction in the AMC stock (NYSE: AMC) is not visible. Therefore, prices might consolidate for some more time till the next update about APE units conversion is released. Technical analysis suggests that AMC stock price is in bear grip and any short term upward move will lack the momentum on the higher levels. 

AMC Stock Price Might Trigger Short Squeeze

AMC stock price is near a 52 week low and if the short sellers begin to book profits, then a wild short squeeze might get triggered. On the other hand, if the AMC stock hits a fresh 52 week low, then the bears may try to drag the price down toward the $3.00 level. Technical indicators like MACD is on the way to generate a negative crossover which indicates bearishness. The RSI at 35 pointing south denotes weakness and prices might test the oversold zone in the coming days. 

Conclusion

AMC stock price tumbled 28.48% on a single day and lost a big chunk of its market capitalization. AMC Entertainment (NYSE: AMC) agreed to settlement terms, opening up for APE conversion which benefited the APE prices. According to technical analysis, AMC stock is in downtrend and there are no signs of recovery visible. 

Technical levels

Resistance levels : $6.00 and $7.00

Support levels : $3.77 and $3.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.