The Cineworld share price has struggled lately as the recent Covid trend has worried investors. The CINE stock is trading at 62.86p, which is about 50% below the highest level this year. This values the firm at more than than 857 million pounds.
Cineworld has lagged
The Cineworld share price has declined sharply recently. It is not alone. On Wednesday, the AMC stock price declined by more than 11% while Cinemark declined by more than 5%.
This trend happened as worries of the Delta virus remained. As the numbers rise, there are concerns that countries will add more restrictions. At the same time, more people could keep off from movie theatres as they fear infections.
Some US states have already started putting restrictions. For example, this week, New York added new vaccination and mask mandates. Other states will likely add these restrictions. The country is also said to be drafting registration that will ensure that all people who visit the country be vaccinated.
This is an important thing for the Cineworld share price because the firm has operations in the UK through its Regal Theatre chains.
The next key catalyst for the Cineworld stock will be the firm’s interim earnings that will happen on 12th of August. Analysts expect that the company did well in the second quarter as the theatre industry rebounds. The company will also be cautious in its projections because of the Covid uncertainties.
Still, analysts who track the firm are optimistic about the stock. For example, analysts Peel Hunt expect that the shares will rise to 75p while those at Berenberg, Numis, and Barclays expect that it will rise to more than 75p.
Cineworld share price forecast
The daily chart shows that the CINE share price has declined by about 50% from its highest point this year. Along the way, it has moved below the 25-day and 50-day EMA. The MACD remains below the neutral level while the shares have formed a bearish flag pattern.
Therefore, the path of the least resistance for the pair is bearish, with the next key level to watch is 50p, which is about 20% below the current level. On the flip side, a move above 70p will invalidate this view.