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Cineworld Share Price Remains Volatile Amid Takeover Speculations

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Written By: Abdullah Sarwar
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    Summary:
  • The Cineworld share price remains volatile due to the ongoing rumors of Vue takeover. It is better to wait for a confirmation than buying right now.

Cineworld share price (LON: CINE) is experiencing very high volatility due to the recent takeover speculations. The deadline set by Cineworld for the submission of bids has already been passed, and nothing concrete has come up yet. For the past few weeks, there have been rumors of a potential takeover by the rival chain Vue screens.

Since Cineworld Cinemas filed for its bankruptcy in September 2022, the company has been in contact with many potential bidders. However, no deal has been able to come to fruition yet. Among the interested buyers were the Canadian cinema chain, Cineplex, and AMC Theatres. The deal with the latter fell apart at the final stage.

What Is Going On With Cineworld?

Cineworld stock (LON: CINE) showed a positive price action last week due to a Sky News report. The report said that the new shareholders of Vue have given the go-ahead for a Cineworld takeover. However, no official announcement has been made yet by either company, and uncertainty prevails.

Cineworld announced to close 39 Regal theaters in the US by 15th February. However, most of these sites are still open. In fact, these locations are also selling advance tickets of upcoming movies like Ant-Man.

Cineworld Share Price Forecast

On a higher timeframe, LON: CINE is depicting a very bearish price action. Even before the Cineworld bankruptcy, the shares had been experiencing an intense sell-off. Nevertheless, a reclaim of 6.2p can unlock some upside. If the news of Vue takeover gets confirmed in the coming days, then Cineworld share price can surge toward 9 GBX.

However, in the event of a failure to reclaim the 6.2 GBX level, Cineworld shares can tank below 2 pennies once again to retest the 2022 low. Therefore, I would rather wait for the price to break above 6.2p than buy at the current price due to the prevailing uncertainty.

The upcoming rate hikes can increase the selling pressure, making a recovery even more difficult. The following chart shows the key levels to watch.

Cineworld Shares (LON: CINE) Daily Chart

This post was last modified on Feb 20, 2023, 12:00 GMT 12:00

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.

Published by
Written By: Abdullah Sarwar