AMC stock slides again on Friday with more losses likely to follow but a rally is overdue

• AMC stock continues to fall as markets turn lower on rate fears.
• AMC stock is suffering as higher risk equities suffer disproportionally.
• More losses are likely until the market sentiment improves.

AMC stock fell 2% on Friday to close the session ut at $16.52 and mark yet more losses for the theatre chain. It is not too long ago that AMC stock surged to a high of $34, but since then it has been all one way traffic. The catalyst for that move never looked like it would sustain the share price as a small investment in HYMC stock was never going to generate a significant return. It did however generate interest which pushed up the AMC stock price. Now that the momentum has faded we have witnessed a sharp fall. This coupled with a worsening overall environment for stocks has hastened the fall.

AMC stock news

The investment in HYMC stock proved noteworthy in that it at least it generated a lot of attention and maybe took some of the focus away from how AMC is going to exit from its pandemic slump and return to profitability. HYMC does have its shareholder meeting announced for June 2 where 12 million shares are due to be approved for issuance as part of a pay incentive. Nice work if you can get it! The company was near bankruptcy in November and now it is announcing a hefty bonus plan. AMC stock meanwhile is in a serious slump having lost more than half of its value over the past few weeks. In the current environment, this looks set to continue as risk assets are being punished by higher interest rates. Shutdowns in China are also weighing on investor sentiment. 

AMC stock forecast

$34.60 was a powerful resistance with the downtrend line and the 200-day moving average. so not that surprising that AMC failed up there. the shooting star candle with a long upper wick shoed the momentum was failing and led us lower. Now AMC will likely see more losses but mostly due to the equity environment, not AMC specific. At some stage soon the stock is setting up for a strong rally but not all factors are in place yet. The MFI has moved into oversold territory but the RSI is still neutral. $13.03 is the next big support and we would like to see this hold but for now, at least the downtrend remains in force. But watch for signs of a bounce, social media mentions, general equity market recovery and a fall in yields.

AMC stock chart, daily