AMC Entertainment Holdings Inc. (NYSE:AMC) shares are trading higher Tuesday and moving alongside Gamestop Corp. (NYSE:GME) as meme stocks are pushing upward today. Both Gamestop and AMC are hugely popular stocks in numerous threads on Reddit.
AMC was up 9.59% at $16.34 at time of publication.
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AMC Daily Chart Analysis
- AMC shares are approaching resistance in what traders call a downward channel as the stock is possibly beginning to see a reversal. The stock has been trading in this downward channel since the break below support in a pennant pattern.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been climbing the past few weeks and now sits at 37 on the indicator. This shows more buyers have been entering into the market over the past couple weeks. If the RSI continues to climb, the stock could see higher lows begin to form, which could lead to the start of a reversal.
What’s Next For AMC?
AMC looks to be getting ready to turn around and start climbing once again if it can break above the channel resistance. If the stock can begin to form higher lows, it may start to see this trend reversal.
Bullish traders are looking to see the stock break above the channel resistance and see the RSI climb above the middle line for a possible reversal to start. Bulls are then looking to see the price cross above the moving averages for the sentiment to turn bullish once again.
Bearish traders are looking to see the stock get rejected by the channel resistance and continue to trade lower. Bears are in control of the stock as it currently sits and need to see resistance hold for it to stay that way.
