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.
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.
This price action is tracking literally almost picture perfect what I wanted to see.— Trey’s Trades (@TradesTrey) September 1, 2021
3rd $48.50 test has happened. Watching for the 4th and break.
You guys should be so stupid excited watching this it’s not even funny
AMC is ready for something filthy.
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.