Is AMC Entertainment Setting Up for a Big Move?

NYSE: AMC | AMC Entertainment Holdings, Inc.  News, Ratings, and Charts

AMC – A symmetrical triangle has formed in the chart of AMC Entertainment Holdings Inc. (AMC). This forms when a down trending resistance line is combined with an up-trending support line. If the stock breaks through either level, a strong move is expected. Read more to learn how to profit from this trade.

AMC Entertainment Holdings Inc. (AMC) is involved in the theatrical exhibition business. It owns, operates or has interests in theatres located in the United States and Europe. The company provides best-in-class amenities such as plush, power recliners, MacGuffins full bars, AMC Dine-In Theatres, premium presentation.

AMC has become one of the top meme stocks as Reddit traders forecast a large turnaround for the company. The retail investors expect a short squeeze and consumers heading back to movie theaters. While the company is recovering, its revenue is still considerably lower than its 2017 through 2019 numbers.

While its current cash balance of $1.6 billion is much higher than its short-term debt of only $29 million, it is considerably lower than its massive long-term debt of $10.3 billion. Sales have lost an average of 34.7% per year over the last three years.

However, revenues are expected to rise 581.3% year over year in the current quarter leading to a Growth Grade of B in our POWR Ratings system.  The stock looks very overvalued, though, with a price to sales ratio of 9.6. AMC was showing bullish momentum in June only to fall in July. Performance has been mixed since. This is evident in the chart below.

Take a look at the 1-year chart of AMC below with my added notations:

Chart of AMC provided by TradingView

AMC is consolidating within a common chart pattern known as a symmetrical triangle. A down trending resistance combined with an up-trending support forms the triangle pattern (blue). Since there is no true way to know which way the stock will break, traders will often wait for the breakout or breakdown before entering a trade.

Click Here to Read the Greatest Trading Book Ever Written

A trader could enter a long position on a break above the down trending resistance with a protective stop set under the entry level. However, if the stock were to break below the trend line support, a short trade could be entered with a protective stop above the trend line.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades…like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


AMC shares were trading at $37.78 per share on Monday morning, up $0.15 (+0.40%). Year-to-date, AMC has gained 1,682.08%, versus a 25.15% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AMCGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for 2025?

Its easy to get caught up in the celebration of new highs above 6,000 for the S&P 500 (SPY). Yet Steve Reitmeister warns about tougher sledding for investors in 2025. Read on for the full story...

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Stock Market Outlook: Is Inflation Still Too Sticky?

Investors need to wake up and smell the inflation. That’s right even as we are celebrating new highs for the S&P 500 (SPY), inflation has become sticky once again which may delay the Fed’s next rate cut. And yes...that is not good news for stocks. Get the full story below...

Read More Stories

More AMC Entertainment Holdings, Inc. (AMC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AMC News