Cineworld (LON: CINE) share price has fallen below the key psychological level of 1p once again. The shares of the theatre-chain operator showed extreme volatility as they opened on Monday. On a higher timeframe, the price appears to be consolidating before a major move.
On Monday, the benchmark FTSE 100 index was up 22.5 points in the opening hours as the UK shares remained positive. Cineworld shares also showed a very positive price action today. At press time, the shares were changing hands 4% above their previous close.
As per the most recent Cineworld news, the company has finally struck a deal with its in-theatre advertised National CineMedia. The deal will allow the advertiser to have rights to advertise in 450 Regal Cinemas sites. The decade-long deal will accelerate the firm’s exit from bankruptcy depending on the court’s approval.
In other news, the second largest theatre-chain operator of Europe is set to exit bankruptcy in July 2023. This became possible after the company received support from more lenders. Cineworld filed for bankruptcy in September 2022 and has failed to find any suitable offers for its major businesses.
The following LON: CINE chart reveals that the shares are consolidating before a major move. While this move can be in either direction, the higher likelihood remains of a downside move. In the coming days, I expect the shares to retest the bottom of the 0.6p – 0.8p demand zone. This will also mark a retest of the April 2023 lows.
However, for the Cineworld share price forecast to avoid a bearish outlook, the price needs to reclaim the range lows that lie at 1.88p. This, together with its exiting bankruptcy, may cause a relief rally in the shares of the British cinema operator, which has been in a downward spiral since its bankruptcy.
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This post was last modified on %s = human-readable time difference 10:10