- AMC Entertainment Holdings, Inc. (NASDAQ: AMC) reveals that the price is under the control of the bears.
- AMC stock lost 59.99% in the last one year
- The stock price is attempting to break a descending channel with a price target of $5.87
The Entertainment Holdings, Inc.’s (NASDAQ: AMC) price prediction reveals that the market has been under a bearish influence since March 2023. The market is being controlled by the bears since the AMC stock price fell from its resistance of $8.49. The fall has consumed 50% of the value in the past few months. The AMC stock price has been consolidating in a range after the fall. Meanwhile, the price takes support from the demand zone of $4.
At the time of writing, AMC Entertainment Holdings, Inc. closed its trading session on Friday, 21st July 2023 at $4.40. This marked a jump of 1.62% over the prior day.
Can AMC Entertainment Holdings, Inc. break the Descending channel to the upside?
AMC Entertainment Holdings, Inc.’s stock price travels in a declining channel on its way down. The AMC stock is trading below the 200 EMA, which is a sign of bearish dominance. Meanwhile, the 9 and 15 EMAs are running flat, suggesting that the price is moving sideways.
At present, the AMC stock price lacks momentum, which is highlighted by the formation of small candles. The price is attempting to break the descending channel, which may allow the bulls to dominate in the short term. The Friday session witnessed a surge in volume, representing the aggressive accumulation of buyers. The price has local support at $4.36.
Will the AMC Stock Break the Resistance and Move Up?
On the 4-hour chart, the AMC stock price can be seen struggling in a tight range. The market is getting resisted at the local resistance of $4.55. The bulls would require significant effort to break the defense of the sellers. The price has made multiple attempts to break the resistance but has failed so far.
The market made a small recovery of 8% from its swing low. Although there is less momentum in the market, the stock price is relatively volatile compared to other stocks. Therefore, investors should stay cautious and manage their positions accordingly. The price is biased towards the bears.
RSI
The RSI indicator is currently at 53.69. It represents a mild bullish condition, where the market may move sideways. The price may move up aggressively if RSI goes above 70.
MACD
MACD has made a bullish crossover. But the indicator is running flat at the 0 line. This indicates that the price is consolidating and the trend is unclear.
200 EMA
On the 4-hour chart, the price is trading below the 200 EMA. It indicates that the market is under sell pressure and the bears are in control. The 200 EMA will act as significant resistance. The stock price will continue to move down until it breaks above the indicator.
Conclusion
AMC Entertainment Holdings, Inc.’s (NASDAQ: AMC) price prediction reveals that the market has been under a bearish influence since March 2023. On the larger time frame, the overall trend is bearish, and there are no signs of reversal. Therefore, investors should wait for the price action to show a reversal condition. The best way to navigate volatile markets is by using a proper risk management strategy.
Technical Levels
- Support level: $4.20
- Resistance level: $4.55
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.