Last week, Imax Corp (NYSE:IMAX) CEO Richard Gelfond told CNBC’s ‘Squawk On The Street’ AMC Entertainment Holdings Inc.’s (NYSE:AMC) trading fiasco has positively impacted his company. Gelfond spoke after the meme stock swang to a net session loss of 21% on Thursday after plunging more than 34% in the morning hours. AMC extended the same Volatility pattern to this week after swinging up 22% on Monday before pulling back late on to end the session 14.80% above Friday’s close.
Could AMC buy Imax?
The recent surge in the price of AMC now values the company at about $27.54 (£19.48) billion. The massive rise in AMC stock price has triggered speculation that the company could be poised to buy rival Imax. However, Gelfond recently refuted those suggestions saying that, Imax is not for sale and that the company was in an excellent financial position. Therefore, it looks less likely that AMC would buy Imax any time soon. But a lot can change very quickly in the stock market.
AMC shares appear to be trading within a consolidative triangle formation in the 60-min chart. The stock has recently pulled back to return to the mid-section of the 14-hour RSI.
Investors can target short-term profits at around $63.20 or higher at $72.62. The key support levels are $47.31 and $37.14.
Is Imax benefitting from AMC stock’s fiasco?
IMAX shares appear to be enjoying a solid bull run amid AMC’s trading frenzy. Imax stock is up more than 23% since the 9th of February. So, from this perspective, there is a positive correlation between the increase in the buying activity in AMC shares and Imax stock price.
From an
