To The Moon

$AMC Entertainment(AMC)$

Thursday, August 4 is tomorrow, so much of the retail crowd that has been following AMC for some time is preparing for the prophecied MOASS. This stands for the Mother Of All Short Squeezes. Traders think once AMC Entertainment reports Q2 earnings, a steep level of buying will destroy institutional short sellers and produce so much upward pressure that they will be forced to buy out of their shorts at staggering prices. Think of it like the hobbits preparing for Helm's Deep.

At AMC's Q2 earnings call, which is scheduled for the post-market on August 4, Wall Street is expectingadjusted earnings per share of $-0.23 on revenue of $1.18 billion. Analysts are mixed on theiroutlookahead of the release.

Warner Bros.'s DC League of Super-Pets brought in $23 million in its debut over the weekend, which mostly impressed box office observers. Still it was below the previous weekend's winner, Nope. That horror film from Jordan Peele did $44 million in its opening week and has now surpassed $80 million cumulatively. It does not open internationally for another few weeks but is already the best grossing original film in its opening weekend since Peele's Us, which came out before the pandemic.

Neither of these films are anywhere close to Minions: The Rise of Gru, which has done $714 million globally, or Thor: Love and Thunder, which has grossed $665 million worldwide.

IMAX CEO Richard Gelfond recently said he was impressed with movie attendance. "We're only down 5% from 2019, which was our best year ever," Gelfond said. IMAX reported earnings last week and beat forecasts for revenue.

AMC stock forecast

It is doubtful that there will be major selling before Q2 earnings are released. While AMC stock appears to have reached resistance around $17.50 at the moment, everything will depend on the results. Of note is the Relative Strength Index (RSI) heading back toward its high on July 21. This shows the trenchant demand for AMC stock and demonstrates there is a ways to go before an overbought reading.

Right now bulls will mostly be thinking about overtaking the July 21 price high of $18.37. Support sits where the 9-day and 21-day moving average cross around $15.30 and then at the longer-term support trend line at $14. That trend line began ascending on May 12, so it is nearly three months old and likely rather hard to break in the near term.

AMC daily chart

Update: AMC Stock finished Wednesday at $18.21 per share, up 8.01%. Gains were directly linked to the positive tone of Wall Street, as the three major indexes managed to end the day in the green. The Dow Jones added 1.28%, up 5.51%, the S&P500 added 73 points, while the Nasdaq Composite was the best performer by adding 2.59%, up a whopping 13.84% from a month ago. Upbeat us data underpinned stocks as a solid US Services PMI hinted at a resilient economy, despite fears of a potential recession.

Additionally, multiple US Federal Reserve officials hit the wires ever since the week started and signaled they are far from done with quantitative tightening. On the other hand, most believe that inflation will continue to broaden, and will likely need more aggressive action from the central bank. By the end of day, speculative interest put a 75 bps rate hake in September back on the table.

source：fxstreet