$AMC Entertainment(AMC.US)$ shares are trading higher Wednesday, likely continuing the momentum from Tuesday after the company said its October ticket admission revenues were the highest the company has seen for any single month since February 2020.
AMC Entertainment was up 11.91% at $43.41 at press time.
AMC Entertainment Daily Chart Analysis
The stock recently bounced off of support in what technical traders call a pennant pattern. It looks to be nearing the end of the pattern and could see a breakout in the next couple of weeks.
The stock is finally nearing the end of the pattern after being condensed between narrowing highs and lows for months, and looks to be primed for a breakout in the coming weeks. A break of pattern support or resistance could indicate the stock is ready to see a further move in the same direction.
The stock trades below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely seeing a period of consolidation.
The 50-day moving average may act as a place of resistance, while the 200-day moving average may hold as support.
The Relative Strength Index (RSI) has been curling higher the past few days and now sits at 49. This shows that the buying pressure is now almost equivalent to the selling pressure.
What’s Next For AMC Entertainment?
Apeish traders want to see the stock continue to trade within the pennant pattern and eventually go on to break above pattern resistance. A break above could allow the stock see a strong upward push in the future. After a move upward, apes want to see the stock consolidate for a time before possibly continuing higher.
Bearish traders would like to see the stock fall below the pattern support. A dip below pattern support and the stock could see a strong downward push and possibly the start of a downward trend.