AMC Entertainment Holdings Inc. (NYSE:AMC) shares are trading higher Monday, possibly after Pfizer Inc.’s (NYSE:PFE) COVID-19 vaccine was approved by the FDA. This could increase vaccination rates and improve movie theater traffic in the future.

AMC Entertainment was up 6.89% at $36.78 at market close Monday.

See Also: David Vs. Goliath: If You Had $5,000 Right Now, Would You Put It On Netflix Or AMC?

AMC Entertainment Daily Chart Analysis

• The stock is at resistance and possibly nearing a breakout in what technical traders call a falling wedge pattern.

• The stock trades below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.

• The 50-day moving average may act as resistance, while support may be found near the 200-day moving average.

• If the stock can break resistance it may see a further upward move, but if it is unable to break it may fall somewhere near support before it makes another attempt.

• The Relative Strength Index (RSI) has been moving higher and crossed above the middle line. This means there is now more buying pressure than selling pressure in the stock.

See Also: David Vs. Goliath: If You Had $5,000 Right Now, Would You Put It On Netflix Or AMC?

What’s Next For AMC Entertainment?

Bullish traders are looking to see the stock break above pattern resistance with strong volume in the stock. If the RSI can climb higher as the stock moves with volume it may see a breakout and continue to climb.

Bearish traders would like to see the stock be unable to cross above resistance and to start falling back toward support. Bears would then like to see the pattern support be broken and for the stock to fall further.

Image by ipicgr from Pixabay