- AMC stock is down over 15% for 2022 already.
- GameStop (GME) stock is down 5% year to date.
- AMC was trending heavily on social media last week but failed to rise.
AMC shares closed lower on Friday with a steep 3% fall as the stock shows signs of further waning momentum. Meme stocks had suffered as 2021 came to a close and so far early signs in 2022 are of more pain in the meme stock space. Now that the pandemic is hopefully coming to a close is this the end for meme stocks? This was after all the prediction for H2 of 2021 when economies reopening was due to curtail retail frenzy trading. The advent of delta and other covid curtailments may have prolonged the meme party. This time is it finally over?
AMC stock news
Holders are pointing to strong fundamental data for AMC with movie attendance growing and this trend is set to continue with covid hopefully out of sight soon. However, let us face it AMC was never a fundamental investment. I think we can all admit this one trades at a huge fundamental valuation that is hard to justify. No this was pure momentum. The trick with momentum names is to get out early. Get in late to make sure the train is moving but get out early before it comes to a shuddering halt.
AMC stock forecast
AMC has never recovered from the key $34.60 level we identified in October. Once this broke it was straight through the 200-day moving average and AMC has not yet managed to recover. Now some hope identifies itself on the chart in the form of a potential double bottom. Friday’s low at $20.80 exactly matched the low from December 14. Double bottoms are powerful reversal signals so if AMC can hold this may be a staging point for a rally. So this is the key short-term pivot in our view. Break and it is onward to $14, but hold and a test of $30 wouold be the next technical step.
AMC stock chart, daily
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