The Cineworld share price rose 0.29% today after the bears decided to take a break following three days of selling. This scenario sees the Cineworld share price on course to end the week lower by 3.66%.
This is the third in four weeks that the Cineworld share price would end in negative territory. The stock’s downside this week was triggered after Mooky Greidinger, CEO of Cineworld, took a plea bargain to plead guilty to violating the terms of a merger for failing to distribute eight movies to competing firm Lev cinema.
The ruling came from an Israeli court and involved a Cineworld-owned cinema chain, Rav Hen. During testimony, Greidinger admitted that Cineworld was in dire straits, crippled with debt and seeing its share price drop by 93% after being hammered by the COVID-19 pandemic.
Greidinger’s journey to becoming CEO of Cineworld traces its origins to modest beginnings from a small theatre in Haifa, Isreal, bought by Greidinger’s grandfather in 1930. After joining the business in 1976, Greidinger expanded the then-family business rapidly and eventually merged with UK-based Cineworld in 2014.
Cineworld acquired Regal Entertainment Group in 2017 for $3.6 billion in a sale that has been the subject of shareholder controversy. A deal to purchase Cineplex Entertainment, a Canada-based firm in 2020 collapsed as the COVID-19 pandemic shuttered theatres. A judge ruled in favour of Cineplex, asking Cineworld to pay damages to Cineplex in a case that the company says it will appeal.
The Cineworld share price has severe headwinds to battle heading into H2 2022.
The day’s uptick comes from a bounce just above the support line at 20.04. This bounce needs extra momentum to challenge the 22.71 resistance (22 June high). A break of this level is needed to grant the bulls access to the 26.63 price mark (7 June high). A further push to the north is needed to take the price action to the 31.72 resistance (29 April high), with 35.07 (25 March high) entering the picture as another northbound target.
Conversely, any rallies may be seen as a new selling opportunity. Such short opportunities may come off a rejection and pullback from either 22.71 or from the 50-day moving average at 26.63. Ultimately, these rally-sell positions must take out the 20.04 support level (16 June low) to make the 15.55 support level available to the bears.
This post was last modified on %s = human-readable time difference 16:12