AMC Entertainment (NYSE:AMC) stock declined on Thursday as a weak broader market backdrop and selling after a sharp rally put pressure on the stock. The stock surged 15.06% on Monday to $3.26 from $2.92, but AMC stock has declined since, despite a small bump on Wednesday.

The Nasdaq is down 0.03% while the S&P 500 has shed 0.19% and Communication Services is lower by 0.8%.

•  AMC Entertainment stock is showing notable weakness. Why is AMC stock dropping?

The broader market faces pressure today as U.S. bonds resumed their sell-off on Thursday. Investors continue to believe the Federal Reserve will raise interest rates further to address inflation and strong economic activity. The yield on the 10-year U.S. Treasury note rose for a fourth consecutive session to 5.33%, reaching its highest level since early 2002, according to Trading Economics.

New Birthday Party Program

On Thursday, AMC launched an all-new birthday party booking experience at approximately 300 locations, offering up to 25% savings on private theater rentals. The program includes digital invitations through Evite.

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Technical Analysis

Even after Thursday’s drop, AMC is still trading above its key moving averages, which keeps the bigger-picture trend constructive: it’s 1.7% above the 20-day SMA ($2.74) and 5.5% above the 50-day SMA ($2.64). The stock is also 22.5% above the 100-day SMA ($2.28) and 51.6% above the 200-day SMA ($1.84), showing the longer-term recovery remains intact despite the day-to-day volatility.

Momentum is best described as "resetting," not breaking: RSI is 51.27, which is neutral and suggests the stock isn’t stretched to the upside or downside right now.

The trend backdrop still leans bullish, with the 20-day SMA above the 50-day SMA and a Golden Cross (50-day SMA above the 200-day SMA) that occurred in July. From a structure standpoint, AMC is also below its 52-week high of $3.40 (set in September) but well above the 52-week low of 93 cents (set in March), reinforcing that the stock has been in a higher-range regime versus earlier in the year.

  • Key Resistance: $2.81
  • Key Support: $2.64

AMC Stock Price Activity: AMC Entertainment shares were down 8.50% at $2.75 at the time of publication on Thursday, according to Benzinga Pro data.

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