$AMC Entertainment (AMC.US)$ The AMC Chart: AMC fell through...

$AMC Entertainment (AMC.US)$
The AMC Chart: AMC fell through a key support level at the $25.79 mark. The stock hasn't traded below the area since May 27 and the area may now act as heavy resistance.

The move lower happened on higher-than average volume, which indicates fear has gripped some traders and investors. By late morning, over 30 million shares had already exchanged hands compared to the 10-day average of 48.44 million.

The stock is trading in a confirmed downtrend, with the most recent lower high created on Dec. 8 at $33.92 and the lower low printing on Monday below the Dec. 3 low-of-day at the $25.31 level.

AMC’s relative strength index is measuring in at about 30%, which puts the stock into overbought territory and can be a buy signal for technical traders. This may indicate AMC is due for at least a bounce in the near future.

The stock has resistance above at $25.79 and $29.45 and support below at $20.36 and $17.07.