AMC Entertainment Holdings Inc. has shown recent technical strength that traders may be interested in exploring further.
AMC stock closed at $40.79/share on 11/3/2021, with more bullish momentum to come.
AMC Entertainment Holdings Inc. AMC Stock’s Technicals Broken Down
AMC Stock Price: $40.79
10 Day Moving Average: $37.07
50 Day Moving Average: $40.79
200 Day Moving Average: $28.01
RSI: 56.9
MACD: -0.543
Yesterday, AMC stock completed a bullish MACD crossover, while the day’s high prices also went over the 50 Day Moving Average, although they settled for the day right on it.
There is a ~10% difference between the 10 & 50 Day Moving Averages, which will provide additional bullish momentum in the days to come.
The $44.20 level will be the next resistance test, which they should see in the coming days, as their RSI is still relatively neutral.
AMC Entertainment Holdings Inc. AMC Stock As A Long-Term Investment
AMC has recently been one of the meme stocks, that traders have been pumping for short-term gains.
As a long-term investment, they are pure speculation.
Their P/E (ttm) is negative & their P/B is 0.18 (which is low & may be the only appealing aspect to their stock).
AMC stock’s Quarterly Revenue Growth is 2,252.9%, which is only because of COVID lockdown measures being rolled back Y-o-Y.
AMC’s balance sheet is also unappealing with Total Cash (mrq) of $1.81B & Total Debt (mrq) of $11.08B.
Again, this is a purely speculative name.
AMC Entertainment Holdings Inc. AMC Stock As A Short-Term Trade Using Options
Traders can take advantage of AMC’s current momentum, while also protecting themselves from its speculative nature by trading AMC options
I am looking at the 11/19 expiration dated contracts.
The $40 & $39 calls look appealing as they are already in-the-money & this is an erratic stock.
As a hedge, the $41 & $42 puts also look appealing in the near-term.
The Open Interest on the puts is far lower than on the calls, signaling that traders see this name powering higher in the near-term.
Tying It All Together
Overall, AMC stock is not suitable for investing in, unless you have picked up a discarded scratch ticket on the ground before & won $1,000+; then you may be lucky enough for it to work.
In the near-term, however, they do have momentum that can be taken advantage of for profits.
Always be careful when playing with a speculative name like AMC stock.
*** I DO NOT OWN SHARES OF AMC STOCK ***