AMC Stock Forms Golden Cross as Newest 'Spider-Man' Sets Eyes Opening Day Record

AMC Entertainment (NYSE:AMC) stock continued its strong rally and formed a golden cross after the recent success of key movies like “The Odyssey,” “Spider-Man: Brand New Day,” and “Toy Story 5.” It jumped to $2.82, up by over 200% from its lowest level this year. 

The new Spider-Man film broke the opening day record for the North American box office, made over $355 million at the domestic box office this weekend. That is only about $2 million shy of what “Avengers: Endgame” made in its debut weekend. Over 24.1 million moviegoers turned out for the new Spider-Man film.

The most recent data shows that Spider-Man opened with $169.3 million on Thursday, and $101.5 million on Saturday. Sony expects that the movie will bring in $84 million on Sunday. 

These numbers come a few weeks after The Odyssey debuted and is on track to make $1 billion in sales. As a result, analysts expect that this summer will be the biggest one in terms of revenue since 2019. If this happens, it will surpass the threshold of $4 billion. 

AMC is expected to be a major beneficiary of this trend. Its recent earnings showed that its revenue jumped by 14.2% to $1.59 billion in the second quarter. For the first half of the year, its revenue jumped by 16.9% to $2.64 billion. Most notably, its adjusted EBITDA jumped to $359 million in the first half of the year, more than two-and-a-half what it made the same time last year.

AMC Stock Has Formed a Golden Cross Pattern

AMC shares chart | Source: TradingView

The daily chart shows that the AMC stock bottomed at $0.9291 earlier this year and then started a strong comeback. It has now completed filling the gap that formed on June 22nd. 

Most importantly, the stock has formed a golden cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. This pattern is one of the most common bullish signs in technical analysis.

The stock remains above the Supertrend indicator, while the Relative Strength Index (RSI) has continued soaring. Therefore, the path of the least resistance of the AMC share price is bullish, with the next key target being the year-to-date high of $2.95. A move above that level will point to more gains in the near future. The consensus target among analysts is $4, up by 50% from the current level.

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