AMC Entertainment Holdings Inc. shares are trading lower Monday as the market continues to dip. Many other popular WallStreetBets stocks are pushing lower as well.
AMC has fallen out of a pattern and is now on a strong downward trend.
AMC was down 9.74 percent at $16.22 at time of publication Monday.
AMC Daily Chart Analysis
The stock is now trading in a downward trend after falling below a pennant pattern. This shows bearish traders have taken control of the stock. The bearish trend may continue to hold until the price can cross above the channel resistance.
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) continues to fade lower and now sits at 21. The RSI is in the oversold region and the stock continues to see strong selling pressure. The price may continue to fall lower if the RSI holds below the oversold region.
What’s Next For AMC?
AMC has been falling for the past few weeks in the channel pattern and may continue to fall if the price stays below resistance. Bears are in control of the stock and are looking to see the price continue to hold below the resistance and below the moving averages.
Bullish traders are looking to see the stock cross above the resistance and begin to form higher lows once again. Bulls are also looking for the RSI to climb and reach above the middle line, which signals that there is more buying pressure than selling pressure.
By Tyler Bundy
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