AMC Entertainment Holdings, Inc (NYSE:AMC) is set to print its first-quarter financial results after the market close Monday. The stock was trading over 6% lower at one point, heading into the event and remains down over 63% from the March 29 high of $34.33.
After the theater chain printed its fourth-quarter beat on March 1, AMC closed the following two trading days flat to its pre-reporting price. For that quarter, AMC reported a net loss of 11 cents per share on revenues of $1.17 billion, which beat the consensus estimate of a loss of 26 cents per share on revenues of $1.09 billion.
For the first quarter, analysts estimate AMC will report a loss of 63 cents per share on revenues of $736.23 million for the quarter.
From a technical analysis standpoint, AMC stock appears headed for at least a bounce. Of course, holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat. Options traders, and particularly those who are holding close dated calls or puts, take on extra risk because the institutions writing the options increase premiums to account for implied volatility.
The implied move for options on AMC Entertainment expiring this week is 16.13%.
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The AMC Chart: AMC has been trading in a steep downtrend since March 29, making a consistent series of lower highs and lower lows on the daily chart. The most recent confirmed lower high was printed on May 3 at $16.11 and the most recent confirmed lower low was formed at the $14.61 mark on May 2.
- On Monday, AMC was falling on higher-than-average volume, which indicates a level of fear has gripped investors. At press time, over 30.2 million shares of AMC had exchanged hands compared to the 10-day average of 27.1 million.
- Technically, AMC looks set to bounce up to at least print another lower high because it has fallen 14% over the last three trading days without a relief rally. AMC’s relative strength index is also measuring in at about 30%, which puts the stock into oversold territory and can be a buy signal for technical traders.
- AMC has resistance above at $14.68 and $17.07 and support below at $12.22 and $9.90.
