AMC Entertainment Holdings (NYSE:AMC) is rising again after shows returned to the theatres. With Batman showing on its screens, AMC has made several super moves in the last couple of weeks.
The company has added seven new locations and 66 screens to its portfolio. This comes after the acquisition of Bow Tie Cinemas. For a company that less than six months ago faced serious liquidity challenges, these moves are a pointer to full recovery.
We take note that AMC received a lot of attention following the acquisition. The stock rose more than 3.67% after the news. This analysis finds that if the $20 valuation is tested, AMC will be set to find the next significant level of $25.
The appreciation is highly possible ahead of the next earnings release in about three weeks. If investors take a position now, then they are likely to benefit from as much as 25% in returns.
AMC will establish support at $18 and resistance at $28
Source – TradingView
At the time of this analysis, AMC traded at $18.03. It just turned bullish on the MACD indicator. The relative strength index at 42 is just above the 14-day average of 37, close to the oversold region.
In addition to these indicators, it is considered that AMC will maintain the $18 reference support. We adjust the resistance level to $28. It is likely that the levels will be tested within the next three weeks.
Summary
AMC signals full recovery with the recent acquisition of Bow Tie Cinemas. The new support level is $18, with resistance at $28. The target price for the next three weeks is $25.
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