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Trey's Trades' Four-Test Trend Is Signaling A Breakout For AMC Entertainment

AMC Entertainment Holdings Inc (NYSE: AMC) stock is relatively predictable through technical analysis, Trey's Trades YouTube channel host Trey Collins said in an interview last week on Benzinga&

Benzinga · 09/01/2021 10:17

AMC Entertainment Holdings Inc (NYSE:AMC) stock is relatively predictable through technical analysis, Trey's Trades YouTube channel host Trey Collins said in an interview last week on Benzinga's YouTube show "Power Hour."

What Happened: Collins discussed one trend in particular with Benzinga last week. He calls it the "four-test trend."

Whenever the stock tests critical levels of resistance, it usually takes four attempts to break through the resistance, Collins said. 

This theory played out in AMC Entertainment's stock when it broke the $37.50 level and surged higher. The $48 to $48.50 level is the next level to pay attention to, he noted.

Related Link: Trey's Trades Made 'Just Under $1M' Trading Options In AMC Entertainment

Why It Matters: AMC Entertainment tested the $48.50 level for the third time and is set up for a fourth test and a breakout, Collins said Wednesday. 

AMC Price Action: AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period.

The stock was up 0.47% at $47.35 at time of publication.

Photo: Paul Sableman from Flickr.