{"id":31386,"date":"2022-06-01T01:27:57","date_gmt":"2022-06-01T01:27:57","guid":{"rendered":"https:\/\/harchi90.com\/amcs-rally-off-top-gun-maverick-loses-altitude\/"},"modified":"2022-06-01T01:27:57","modified_gmt":"2022-06-01T01:27:57","slug":"amcs-rally-off-top-gun-maverick-loses-altitude","status":"publish","type":"post","link":"https:\/\/harchi90.com\/amcs-rally-off-top-gun-maverick-loses-altitude\/","title":{"rendered":"AMC’s Rally Off ‘Top Gun: Maverick’ Loses Altitude"},"content":{"rendered":"
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Whether it’s a short or long-term investment you’re considering, getting in is much easier than getting out.<\/p>\n

The focus of this article will be exiting a shorter-term investment in AMC Entertainment Holdings Inc.<\/strong> AMC<\/span>the PreMarket Prep Plus stock of the day.<\/p>\n

What A Week For AMC: <\/strong>AMC had a fantastic week along with the broad market ahead of Memorial Day, rallying from $ 12.03 to $ 14.43, or nearly 20%. What is noteworthy about the rally is that it took place on higher than average volume, as opposed to the S&P 500 index, which had a rally as well but on much less than average volume.<\/p>\n

The ‘Top Gun’ Effect:<\/strong> It is no surprise that “Top Gun: Maverick” had the best Memorial Day opening of all time. Not only did the film get rave reviews, but it also had excellent marketing.<\/p>\n

Most importantly, after the last two years of dealing with the pandemic, people wanted to get out and do something fun.<\/p>\n

The Premarket AMC Pump: <\/strong>The primary reason that issues can have more dramatic moves in the premarket or after-hours: there are simply fewer market participants.<\/p>\n

Although there was significant volume in AMC’s premarket trading, many of the larger players or institutions wait until 9:30 am EST to begin entering or exiting large positions.<\/p>\n

On many occasions, the price levels reached in the extended sessions will never be revisited.<\/p>\n

Pulling The Trigger On The AMC Exit: <\/strong>When the issue was being covered on the PreMarket Prep Plus broadcast Tuesday, it was trading at the $ 15.80 area. It should be noted the premarket high of $ 16.64 had already been established just after 8 am <\/p>\n

Since the issue was nearly $ 1 off that level, the chance of the issue coming back to that area was reduced. The reason: later buyers who entered the issue at those elevated levels would try to mitigate or break even on their late entry.<\/p>\n

Instead, the author of this article noted the multiple daily highs from the regular trading sessions and encouraged longs of the issue to closely monitor that level in early trading.<\/p>\n

AMC Price Action: <\/strong>After a much higher open from Friday’s close ($ 15.75 vs. $ 14.43), the issue barely breached $ 16, rallying to $ 16.13 before sharply reversing course. AMC did surpass Friday’s close before finding buyers at $ 13.93.<\/p>\n

Since making that low, it has rebounded into the $ 14 handle and ultimately ended Tuesday’s session down 0.62% at $ 14.34. <\/p>\n

The discussion on the issue from Tuesday’s broadcast can be found here:<\/p>\n