Bullish_Harambe
Short

AMC Ascending wedge short.

NYSE:AMC   AMC ENTERTAINMENT HOLDINGS INC
AMC has been getting some decent hype with its subscription service, but the company is still far from profitable and not expected to be until next year. Technically the stock is in an ascending wedge pattern, which is bearish and is encountering some heavy, historical resistance levels. In addition, the stock price is sitting near the top end of the wedge channel and overbought on the RSI offering an attractive entry for shorts.

I will be shorting with put options expecting the price to drop into the 16.50 range to re-test the bottom of the wedge pattern. I will close my puts there and re-buy if it breaks down out of the wedge pattern lower. I do think the wedge needs to play out a bit more, as it is fairly far from the apex, so I think its a bit premature to predict the wedge will break down at this point, but the TA does point to a price target of $10.15 before a sustained up-trend can occur, likely based on profitability next year.

price prediction for next year?
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