Shares

Cineworld Share Price Forecast: Has the Recovery Started?

Published by
Written By: Eno Ikenna Eteng
Reviewed By: Lilly Mwogah
Share
    Summary:
  • The 4.4% gain in the Cineworld share price could be the start of a recovery move if the bulls surpass the 26.63p resistance.

The Cineworld share price is up by 4.49% this Tuesday, as the bulls resisted attempts by the stock to drop below the 22p mark for the seventh time in six weeks. The uptick comes after the company issued a notice of interim results for the six months ended 30 June 2022, with the results set for announcement on 22 September 2022.

Most of the attention on Cineworld is not coming from market-related events but rather from the protests that have forced the cancellation of the screening of “Lady of Heaven.” The film in question is a religious film that profiled the life of Fatima, the daughter of Prophet Mohammed (PBUH). The centrepiece of the protests concerns the portrayals of certain true-life characters in the movie, considered offensive to a section of Islamic faithful. As a result, Cineworld decided to pull the film from screening, which is now proving to be controversial. 

However, investors chose to blot out the events surrounding the screening cancellations and instead decided to snap up the stock, which is considered to be at attractive price levels. The current Cineworld share price target is 78p, which gives the stock a potential upside of 225%.

Cineworld Share Price Forecast

The uptick of the day has preserved the support at 22.71. A further extension of the bounce targets 26.63 (7 March low and 9 June high via role reversal). A break above this level carves a pathway toward 31.72 (26 April high), leaving 35.07 (28 March high) and 39.95 (17 March high) as the additional price targets to the north. 

On the flip side, there is a potential for a decline toward the 20.04 psychological support level if the bulls fail to sustain the uptick and leave the 22.71 support undefended. An additional slide will take the Cineworld share price toward the 15.55 price level, where the 5 October 2020 low is located.

Cineworld: Daily Chart

This post was last modified on %s = human-readable time difference 15:13

Written By: Eno Ikenna Eteng
Reviewed By: Lilly Mwogah

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng
Reviewed By: Lilly Mwogah