Cineworld (LON: CINE) share price appears to be consolidating below a major resistance level after facing a rejection. The stock appears to be heavily manipulated as it is mostly driven by news. The latest analysis suggests that it might not be a great idea to buy shares of Cineworld Cinema right now.
On Monday, most UK shares showed a positive price action as the benchmark FTSE 100 index rose by 50 points. Cineworld shares also opened higher today, but the candle turned red during the first half of the trading session. However, the shares were still trading 0.19% higher than their last week’s close.
Since filing for its bankruptcy in September 2022, Cineworld share price has been in a downward spiral. During this time, the rumors have kept the price action extremely volatile, generating massive spikes on both sides. The second biggest theatre-chain operator in Europe had to discard its plans to sell its business outside than UK and US.
More recently, the court has also nodded to the company’s efforts to raise $2.3 billion in order to come out of bankruptcy. However, the Cineworld share price has remained in a slump during these developments, suggesting that coming out of bankruptcy might not change the outlook on its stock.
The latest analysis reveals that the LON: CINE price has been trading sideways for the past few weeks. Such a sideways move might be boring for the traders but usually result in a major move in one direction. Considering the recent price action on the daily chart, there’s still a major chance of the price dropping to its new all-time low.
Cineworld share price forecast will remain extremely bearish even if it emerges out of bankruptcy. It will be a very tough job for the management to cut massive operating losses anytime soon.
In the meantime, I’ll keep sharing updated outlook on LON: CINE in my free Telegram group that you’re welcome to join.
This post was last modified on May 15, 2023, 12:30 BST 12:30