AMC is preparing for the move of the century.AMC is forming a multi-year falling wedge. Once it breaks—and it will take time to break—it will trigger an epic move. This could be the move of the century, one that could bankrupt many short sellers for good.
The MACD and RSI on the weekly chart show significant and strong bullish divergences, indicating that the move is about to start.
The price will likely encounter some resistance around $10-$12, where the upper trendline of the falling wedge lies. However, this resistance may last only a week or two before a major breakout begins.
Technical analysis (TA) suggests an exceptionally powerful move is imminent.
AMC is a heavily shorted stock, and when the breakout occurs, the move will be epic due to the need for synthetic share covering. Additionally, AMC is largely owned by retail investors, which means there will be limited shares available to cover the move.
Most importantly, box office revenues are recovering. By 2025, with even better movies, the box office will likely continue to grow, regardless of broader economic conditions—similar to 2009, when the movie industry remained resilient. With this recovery, AMC could even resume paying dividends as it did before the pandemic, further driving the stock toward new all-time highs.
However, remember that this won’t happen this week or even in the coming months. The pressure is building, and it will take time.
This is great news for smaller investors who still have time to buy this stock before it starts moving like never before.
