AMC Entertainment Holdings | AMC | Long at $3.66

First, I'm not an " AMC APE" and have zero interest in becoming one. Second, don't trade AMC unless you are fully aware the investment could go to zero or the company may devalue your trade via share dilution or other means (i.e., don't simply do as I do or blindly follow anyone else's moves, for the matter).

With that aside, I started a position/gambling play today in AMC at $3.66. The reason is 80% technical analysis and 20% fundamentals.

Technical Analysis:
The blue line on the chart represents an average true range (ATR) from a historical simple moving average (SMA) that I use for trading. For simplicity, the historical SMA is not show on the chart - just the ATR. This blue ATR line has historically been a major line of resistance and support. When it breaks through and holds, the stock goes bull - but history may not repeat. The price recently broke the blue ATR line, fell below, and the broke out again today. This may be a sign that the downward trend (overall) is changing - perhaps furthering the accumulation phase in the 3s or a gradual rise from here. And with today's breakout, I grabbed shares at $3.66.

Fundamentals
Since 2020, AMC has shown major gains in revenue and net income (loss reduction, that is). Revenu: $1.24 billion (2020); $2.53 billion (2021); $3.91 billion (2022); 4.81 billion (2023); $4.4 billion (2024, Q1-3 only). Net Income: -$4.5 billion (2020); -$1.27 billion (2021); -$973 million (2022); -$396 million (2023); -$399 million (2024, Q1-3 only). The company is not expected to become profitable until Q4 of 2026, but the improvements are what one would like to see.

Counter-arguments and statements the stock is junk are totally valid. But the chart is quite interesting as the company moves toward profitability (maybe...).

Targets:

1. $4.30
   
2. $6.00
   
3. Squeeze/mass hysteria: $18.00, $40.00, and ridiculousness: $85.00