It doesn't matter whether you prefer watching television or heading to the movie theater, names in both spaces are setting up for a buy.
First is AMC Entertainment Holdings (AMC) for the moviegoers. This stock has already had a nice bounce over the last week after a rough three-month patch that saw shares lose roughly 20% of their value. So this bounce brings a little very short-term caution, only the next few days, but some long-term opportunity. As far the short-term caution, it comes from the size of the bounce thus far.
When we look at the top to the bottom, this recent bounce was stopped right at the 61.8% Fibonacci level. It is possible to retrace to the closest support level around $29.50, which would be my first targeted entry. The alternative is to wait for a close above $30.50 for entry. I would then look to scale out at $31.50, then $32.50 and finally $34.50. I don't expect a full push back to $35.60. The Commodity Channel Index (CCI) recently was above 200, which is a bit overheated, so a pullback to the 80 to 100 area but not below would be beneficial. The stock has shown to rally best when the CCI is above 80 but below 200. Any close below $29 would put me on the sidelines while a close below $27.50 would have me looking much lower on shares.
If staying in and watching the idiot box is your thing, then look at AMC Networks (AMCX). (Quick side note: This would make a fantastic acquisition for Netflix (NFLX), but I digress.) AMCX has been pretty much everything AMC has not been the last few months. The chart is a great example of the lower left to upper right move that bulls love. Note the recent consolidation and test of support several times over the last four months. Until the stock closes below that trending support level, currently just below $79, there is no reason to be bearish.
AMC is consolidating a recent break over $80 in a flag, although this is a bit more of a channel. We may need to see a retest of $80 and then buy a bounce off $80 to get the best risk-reward, although I would consider a push above $82 on higher volume than seen in the previous five trading days before the breakout. Ideally, AMCX will pull back to just below $80, the slow stochastics and CCI will work off these extreme overbought levels and a buy comes into play. The other bullish scenario would be a few more days in this type channel on average volume with little price movement. That should accomplish the same task of burning off the overbought condition, but the entry still won't be quite as attractive from a risk-reward perspective.
Overall, both names are due for a few days of rest or a small pullback, but ultimately they should head much higher if breaking short-term price support is avoided.