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AMC Entertainment Shares Sent Soaring To New Potential Resistance

AMC Entertainment Holdings Inc is involved in the theatrical exhibition business and owns, operates and has interests in approximately 1,000 theatres and 10,700 screens throughout the United States. They have a very simple mission which is to make smiles happen through their services. They do this by delivering distinctive and affordable movie-going experiences throughout the United States.

AMC today announced they have completed their 43 million share at-the-market equity program which was launched on April 29. AMC managed to raise approximately $428 million of new equity capital (net of commissions and fees) for an average price of $9.94 per share. This will help their liquidity which puts them in a stronger position to take advantage of potential opportunities in the near future, and also navigate any potential challenges that lie ahead. Their shares were up approximately 23% as a result of this news.

AMC Holdings have had a crazy year in terms of their stock price which soared approximately 900% in January which was largely in line with the GameStop saga, sending the shares from just below $2 at the beginning of January to highs of approximately $20 per share by the end of January. The shares have since been in a bit of a consolidation period but have recently approached a interesting level after today’s increase.

They have broken a downward trend line and also a the 50% Fibonacci level which the price appears to have been respecting in previous attempts. This is demonstrating strong bullish momentum as the price has increased quite a bit more from this level. The price went higher than the 61.8% Fibonacci level but has ended the day below this level at approximately $13.39, potentially demonstrating some resistance. It will be interesting to see what it closes the week at tomorrow. If we see the price break this level then there could be the potential to increase further from this point. Whereas if it cannot break the 61.8% level then the shares may decrease further. One we will be keeping a close eye on over the coming weeks.

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