The Cineworld share price will be in the spotlight this week as the company releases its full-year earnings. The CINE stock ended the week at 122p, which is 687% above the October low of 15.50p.
The context: As the biggest movie theatre company in the UK, Cineworld was among the worst-affected companies by the pandemic. That’s because it was forced to close most of its stores.
Indeed, the situation got so bad that the company was considering going into administration. It avoided it narrowly after receiving more than $750 million from a group of lenders.
In the past few months, however, Cineworld, which also owns US Regal Entertainment, has seen a remarkable recovery. Its stock has jumped by more than 680% since October last year mostly because of the ongoing vaccination drive. Analysts believe that this vaccination will lead to more demand from moviegoers.
Cineworld earnings: This week, focus will be on the company’s full-year earnings. Generally, analysts are not hopeful that the company did well last year. Indeed, they expect it to report its worst revenue and earnings on record. Still, they will be looking forward to the management outlook for the future now that the UK is doing well in vaccinations.
In the daily chart, we see that the Cineworld share price formed a double-bottom at 18.05p. Since then, the shares have made a significant recovery, and this month, they moved above the important resistance level at 101p. The uptrend has also received support from the 25-day and 50-day exponential moving averages.
Therefore, the CINE share price outlook is still bullish as bulls attempt to test the next key resistance level at 150p. This price is 22% above the current level. However, with earnings being around the corner, we should not rule out a short-term pullback.
