AMC stock (NYSE: AMC) has been on an upward trajectory since the beginning of 2023, with shares increasing by as much as 40% while seeing only little opposition along the way. Though the “meme frenzy” may have paused after 2022’s historically poor performance, many retail investors look to be returning to the forefront in 2023.
Although industry analysts have a variety of opinions on the pricing of AMC for the end of 2023, Coin Price Forecast, which uses data science and machine self-learning technology for stocks, has predicted that the price of AMC will be a long way off $29.44, the highest it hit in 2022.
The AMC price at the end of 2023 is estimated to be $9.21. Notably, the year-to-year change is +126%, a rise from today to year-end: +49%, with AMC opening at $6.18 on February 8.
AMC end-of-year price prediction: Source: CoinPriceForecast
AMC chart analysis
Volume has been considerably higher in the last couple of days, which is what traders like to see during a strong move up. The short-term trend for AMC is positive, while the long-term trend is still negative. So this is evolving in the right direction, but it may need some more time to turn this trend around.
In the last month, AMC has been trading in the $3.91 – $7.33 range, which is quite wide, and it is currently trading in the middle of this range, so some resistance may be found above.
A resistance zone ranges from $6.17 to $6.19, formed by combining multiple trend lines in various time frames. On the daily time frame, resistance at $6.81 is located from a horizontal line. In comparison, one important support area goes from $5.47 to $5.53. This zone is formed by a combination of multiple trend lines.
On Wall Street, seven analysts gave the stock a ‘sell’ consensus rating. Notably, three experts advocate a ‘hold,’ and four have opted for a ‘strong sell.’
Based on five analyst stock evaluations for AMC over the last three months, the average price forecast for the next year is $2.39; the target indicates a -59% downside from its current price and is lower than the Coin Price Forecast prediction.
Elsewhere, the AMC weekly gauges at finance tracking website TradingView are primarily bearish, with a summary in the ‘sell’ zone at 13, the result of oscillators also pointing towards ‘neutral’ at 9, whereas moving averages (MA) suggest ‘strong sell’ at 12.
Deep dive overview
It is tough to zero down on a specific reason for the recent rise in AMC stock price. However, company fundamentals are the least probable cause of this since AMC Entertainment has not yet announced its Q4 results (earnings will likely come out in the next few days).
According to recent reports, discussions about the appropriateness (or lack thereof) of specific short-selling strategies have allegedly surfaced. Roger Hamilton, the Chief Executive Officer of Genius Group (GNS), has engaged a former Director of the FBI to investigate any illegal activities involving Genius Group shares, and he has virtually declared war on naked shorting.
Because naked short-selling is once again becoming more common, it’s conceivable that individual investors have banded together in a more concerted effort to boost optimistic sentiment.
There is no question that AMC’s short interest is still at such a high level, 23%, which helps. According to YCharts, this level of short interest is the highest it has been in the preceding 12 months; the previous 52-week high came in the middle of June 2022, when it was just under 22%.
The type of other significant factors that are likely contributing to the rise in the price of AMC stock is those that are macroeconomic in character and market-wide in scope. As a result of the easing of inflationary pressures and the gradual stabilization of interest rates, some investors are beginning to believe that prices for stocks such as AMC have fallen too far. For example, the Nasdaq 100 has seen an increase of 14% so far this year.
$30 by the end of 2023
The next obvious worry is whether AMC stock can continue to increase from here. It may be deduced from a quick perusal of social media that the vast majority of AMC investors believe it can.
Investors who are optimistic about AMC stock and want to ride the wave of recent gains will find this a solid entry opportunity. If the bulls can continue to gain ground and drive the bears out of the market, a continued upswing may be on the horizon. However, as uncertainty looms, whether it can return to such lofty highs of $30 remains to be seen.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.