Benzinga - AMC Entertainment Holdings Inc (NYSE: AMC) gapped up slightly higher to start Friday’s trading session after reporting better-than-expected first-quarter earnings.
For the quarter, AMC reported a loss of 13 cents per share on revenues of $954.4 million, which came in above the consensus estimate of a loss of 16 cents on revenues of $941.93 million.
Notably, attendance grew during the quarter, rising 21.9% year over year to nearly 48 million.
Heading into the event, AMC on Thursday broke up above heavy resistance at $5.74, which Benzinga called out on Wednesday. On Friday, AMC backtested that area, which has now become support, and bounced up from the level.
The backtest and bouce up from the area created a higher low, which indicates AMC’s uptrend is intact.
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The AMC Chart: AMC reversed course into its most recent uptrend on April 24 and has printed a consistent series of higher highs and higher lows. The most recent higher low was formed on Friday at $5.66 and the most recent confirmed higher high was printed at the $5.74 mark on Tuesday.
- On Thursday, AMC formed a doji candlestick, which can indicate the local top has occurred and the stock will trade lower Friday. In AMC’s case, the doji indicated indecision heading into earnings, and when the stock dropped lower briefly Friday, bulls came in and bought the dip.
- AMC also backtested the eight-day exponential moving average (EMA) on Friday and held above the area, which is bullish. The eight-day EMA is trending above the 21-day. If AMC continues to trek higher, the stock is likely to find at least temporary resistance at the 200-day simple moving average.
- AMC has resistance above at $6.33 and $7.47 and support below at $5.74 and $5.23.
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