Late last month, Cineworld released its financial reports, which did not impact its share price then. However, fast forward to today, Cineworld’s share price is down by almost a percentage point. In addition, the company’s share price dropped by 3 percent in Friday’s trading session.
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In Sell Zone
Cineworld remains one of the largest UK-based cinema companies, with a market capitalization of £317m. However, the company’s growth has not translated to the markets, with revenues failing to reach pre-pandemic levels, despite all restrictions being removed.
Operation-wise, the company has also been in the news for all the wrong reasons, with some of its investors accusing the company of underpaying them during the acquisition of Cineplex Cinemas. The first round of lawsuits saw the courts agreeing with the investors and awarding them a $1 billion settlement. However, the company has gone ahead and appealed the ruling, with a final decision likely to impact its future.
Cineworld Share Price Analysis
The past few hours of today’s trading session can offer us insight into where I expect Cineworld to trade in the coming sessions. The company opened the markets trading at 20.69p. The price quickly rose by 4 percent before dropping heavily until it hit its trading session price low of 19.67p, a 9 percent drop from its session high.
The prices have recovered from the price drop of the past few hours and are currently trading at 1 percent below its opening price. However, the prices also look poised to continue rising, and there is a high likelihood that we will see Cineworld’s share price trade above its opening price.
Therefore, armed with this information, there is a high likelihood that we will continue to see prices continue to rise throughout the remaining hours of the trading sessions. Therefore, the most likely scenario is for the prices to hit today’s session high of 21.69p.
In the coming trading sessions, there is a high likelihood that, despite the recent drop, the current rise to the upside will continue. Therefore, my long-term Cineworld share price is for the prices to continue rising until it hits the 24.43 supply level.
However, should the price retreat back and trade below today’s price low of 19.67, then a likely continuation of the bear move will be the outcome. My bullish trend analysis will also be invalidated.