Cineworld (LON: CINE) share price has seen a brutal collapse this year. The price action of the Cineworld Cinema shares remained highly volatile this year due to the rumors surrounding its bankruptcy proceedings. However, the company’s efforts to find a relevant buyer for its US and UK assets went in vain.
On Monday, Cineworld shares remained highly volatile once again and surged by 8%. However, the price is still trading far below its 1.8p support. The shares have been in a constant tailspin since the bankruptcy filing. For the first time in history, the stock has dipped below the psychological level of 1 penny.
Cineworld Gets Greenlit To Raise $2.3 Billion
According to the most recent Cineworld news, the court has allowed the theatre-chain operator to raise $2.3 billion in its attempt to come out of bankruptcy. Cineworld Cinema is also moving ahead with its landlord negotiations and has filed the latest iteration of leader rejections.
The largest cinema operator in Europe wishes to emerge from bankruptcy later this year. This may have a very positive effect on Cineworld share price, which is trading at its all-time low. The company’s market capitalization has been reduced to only £11.93 million.
Cineworld Share Price Enters Into Accumulation Phase
The following LON: CINE chart shows that the stock is consolidating after breaking below 1.8p support. This support level has now become a resistance as the price got rejected from it recently. In the coming days, the shares may keep trading sideways, awaiting the company to come out of bankruptcy.
My Cineworld share price forecast will remain bearish as long as the price remains below 2p. Only a reclaim of this level can provide some relief to the bulls. The broader market sentiment and the strength in FTSE 100 index will be the key factors affecting the valuation of Cineworld in the coming months.
In the meantime, I’ll keep sharing updated outlook on LON: CINE in my free Telegram group that you’re welcome to join.