Cineworld (LON: CINE) share price has once again perfectly met the price target which I forecasted in my previous analysis. The share of the British cinema operator is now trading at historic lows after dropping below their YTD low.
On Monday, the benchmark FTSE 100 index fell 14 points. The benchmark index was down 0.19% in the second half as the UK shares showed a mixed sentiment. Cineworld shares had a strong bounce today. At press time, the shares were changing hands 16.28% above their previous close.
The latest Cineworld news state that the company is on its way to exit bankruptcy next month. The current CEO Mooky Greidinger, and other top management will be paid around $35 million combined to exit the firm.
Recently, the theatre chain operator struck a deal with its in-theatre advertised National CineMedia. The deal will allow the advertiser to have rights to advertise on 450 Regal Cinemas sites. The decade-long deal will accelerate the firm’s exit from bankruptcy depending on the court’s approval.
The following LON: CINE chart reveals that the shares are trading at their lowest level in history. the recent drop has taken the price below the April lows, suggesting that there could be more downside in the coming days. It goes without saying that the Cineworld share price forecast is pretty bearish for the foreseeable future.
A reclaim of 0.8p may give some hope to the bulls but on a higher timeframe, Cineworld stock is not looking like something to play with. The shares are behaving just like meme stock with massive spikes in both directions.
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This post was last modified on Jun 19, 2023, 15:22 BST 15:22