AMC Entertainment Holdings Inc. (NYSE: AMC) shares are trading higher Thursday, as many Reddit stocks climb higher. The stock looks to have bounced off support in the pattern it trades in, possibly gearing up for a breakout.
AMC Entertainment was up 5.7% at $40.07 at publication time.
See Also: AMC Entertainment Stock Retests This Key Pattern
AMC Entertainment Daily Chart Analysis
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The stock looks to be bouncing off support in what technical traders call a pennant pattern.
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The stock has been getting condensed between narrowing highs and lows and is nearing the end of the pennant pattern where there’s not much more room for the stock to go. The stock could see a breakout within the coming days.
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The stock crossed above the 50-day moving average (green) Thursday and trades above the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
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Both of these moving averages may hold as an area of support in the future.
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The Relative Strength Index (RSI) has been curling higher and now sits at 51. This cross above the middle line shows that the stock is now seeing more buying pressure than selling pressure.
What’s Next For AMC Entertainment?
Bullish traders would like to see the stock trade in the pattern for a bit longer before breaking above the pattern resistance. A break above pattern resistance with a period of consolidation could let the stock see a stronger bullish move following.
Bearish traders would like to see the stock fall below the pattern support. This may allow the stock to see a strong bearish push. Bears are also looking to see the stock drop below the moving averages for sentiment to turn more bearish.
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