The Cineworld share price has been under pressure lately as investors reflect on the Covid vaccine passport issue. The stock reached a year-to-date high of 124.52p on March 19 and then declined by 30% a week later. Yesterday, CINE shares ended the day at 105.60p, 19% above the March 25 low of 88.25p.
What happened: In March, Cineworld reported its biggest annual loss on record as the pandemic forced many countries to shut down movie theatres. Many theatres in some countries, including the UK and US have not yet been reopened because they are seen as being high-risk places.
Recently, the Cineworld share price has jumped because of the vaccination progress being made in the UK and US. The two countries, which are CINE’s to markets, have vaccinated more than 47% and 32% of their population and are gearing towards reopening. In the UK, the company expects to open its theatres from May 17 or earlier. Further, the recent performance of Godzilla vs Kong cheered investors.
However, there are concerns about the so-called vaccine passports. The UK government is considering implementing these passports. According to the Telegraph, the industry is opposed to these vaccines because they will exclude many customers and lead to more bureaucracy. Still, in general, the sector will continue to rebound as more people return to the theatres.
Cineworld share price analysis
The four-hour chart shows that the CINE share price dropped to 88p a few weeks ago. Since then, it has rebounded but it is still between the ascending channel shown in blue. It is slightly below the upper side of the channel. It is also between the upper lines of the Bollinger Bands.
Therefore, in the near term, the shares could continue rising as bulls target the next key resistance level at 120p. However, another drop below the psychological level of 100p could be of concern. It would mean that there are still more bears in the market who would want to retest the low at 88p.