Cineworld share price (LON: CINE) is experiencing very high volatility due to the recent takeover speculations. The deadline set by Cineworld for the submission of bids has already been passed, and nothing concrete has come up yet. For the past few weeks, there have been rumors of a potential takeover by the rival chain Vue screens.
Since Cineworld Cinemas filed for its bankruptcy in September 2022, the company has been in contact with many potential bidders. However, no deal has been able to come to fruition yet. Among the interested buyers were the Canadian cinema chain, Cineplex, and AMC Theatres. The deal with the latter fell apart at the final stage.
What Is Going On With Cineworld?
Cineworld stock (LON: CINE) showed a positive price action last week due to a Sky News report. The report said that the new shareholders of Vue have given the go-ahead for a Cineworld takeover. However, no official announcement has been made yet by either company, and uncertainty prevails.
Cineworld announced to close 39 Regal theaters in the US by 15th February. However, most of these sites are still open. In fact, these locations are also selling advance tickets of upcoming movies like Ant-Man.
Cineworld Share Price Forecast
On a higher timeframe, LON: CINE is depicting a very bearish price action. Even before the Cineworld bankruptcy, the shares had been experiencing an intense sell-off. Nevertheless, a reclaim of 6.2p can unlock some upside. If the news of Vue takeover gets confirmed in the coming days, then Cineworld share price can surge toward 9 GBX.
However, in the event of a failure to reclaim the 6.2 GBX level, Cineworld shares can tank below 2 pennies once again to retest the 2022 low. Therefore, I would rather wait for the price to break above 6.2p than buy at the current price due to the prevailing uncertainty.
The upcoming rate hikes can increase the selling pressure, making a recovery even more difficult. The following chart shows the key levels to watch.
