Cineworld (LON: CINE) share price is once again in a slump after a brief rebound. The shares of Cineworld Cinema are trading at their lowest level in history as the company is trying to come out of bankruptcy. The latest analysis suggests the stock is still a very risky investment as there are no major signs of any reversal.
On Monday, the benchmark FTSE 100 index gained 51.3 points as the UK shares showed a positive sentiment. Cineworld shares opened higher today, but the candle turned red as the day progressed. At the time of writing, the shares were still trading 1% above their previous close.
According to the latest Cineworld news, the troubled theatre-chain operator has received restructuring support from more of its lenders. This might allow the company to exit bankruptcy as soon as July 2023. However, Cineworld reiterated that the process will not mean any recovery for its existing shareholders.
In other Cineworld news, the court has also nodded to the company’s efforts to raise $2.3 billion in order to come out of bankruptcy. Due to this reason, Cineworld share price bounced at the start of this month. However, it turned out to be a dead-cat bounce.
The following LON: CINE chart reveals that the price has broken out of the downward trendline. This breakout took the shares to their monthly high of 1.45p. However, the stock fell back to 1p as the sellers overcame buyers once again.
For Cineworld share price forecast to avoid a bearish outlook, the price needs to break above 7p. This, together with it exiting bankruptcy, may cause a relief rally in the shares of the second largest cinema operator in Europe.
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 29, 2023, 10:57 BST 10:57