AMC Stock Price Forms Bullish Divergence – Is It Time To Buy?

(CTN News) – AMC Stock (NYSE: AMC) has plummeted to historic lows in recent weeks. This company’s shares are experiencing a drastic sell-off at the moment, and they are making new lows on a daily basis.

It is likely that the stock will enter into a long period of accumulation if it does not reclaim a key level.
There was a bounce in AMC shares in the pre-market hours on Monday morning.

At the time of publication, the shares were trading 3.8% above their previous close at the time of publication.

I believe that the bears are firmly in control of the market at the moment, since the stock is trading 90% below its yearly peak after a strong sell-off.

Are AMC Stock shares nearing the bottom?

Meme stock investors are looking for the bottom of AMC stock in order to purchase AMC stock in the long run for a profit.

Here it is worth mentioning that there are no reversal signals at this time, and buying the stock now may be like catching a falling knife, as there is no reversal signal yet. In spite of this, there is still a silver lining, which we will be discussing later in the article.

The smart traders sold their shares before the APE conversion took place, as they saw it coming in advance. As a result, the retailers were left with heavy bags and massive unrealized losses.

The broader market outlook does not appear to be supportive right now, even though there is still some hope for a recovery at this point in time.

Stock forecasts for AMC are hanging by a thread

In light of the current state of affairs, it is unnecessary to mention that the stock price forecast for the AMC stock at this point looks to be very bearish at this point. In terms of NYSE: AMC Stock, the following chart is pretty self-explanatory.

There are several critical levels on this chart, but the most important one is $10.75. The price may continue to fall even more in the future if bears are unable to reclaim this level soon.

A final hope for the bulls is the development of a bullish divergence on the Relative Strength Index (RSI) indicator, which can be interpreted as a bullish signal.

In most cases, these divergences occur close to the bottom of the market. In addition, this suggests that the bears are starting to lose momentum after orchestrating a cataclysmic drop in price.

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