Cineworld (LON: CINE) share price had explosive last week as the stock surged by 37.5%. Nevertheless, the shares remain heavily manipulated as the stock tanked 22% on Monday from their daily high. The latest analysis suggests that it might not be a great idea to buy shares of Cineworld Cinema right now.
On Monday, the benchmark FTSE 100 index showed a minor loss after shedding 9 points. Cineworld shares opened higher today, but the candle turned red as the day progressed. The shares touched a high of 1.45p in the first hour of trading but had plummeted to 1.14p till press time.
Cineworld Cinema Evacuated After Smoke Bomb Incident
The bankrupt Cineworld Cinema had to experience another negative news recently as its Hounslow site had to be evacuated after a smoke bomb explosion. The incident happened during the screening of Simhadri, but no injuries were reported.
In other Cineworld news, the court has also nodded to the company’s efforts to raise $2.3 billion in order to come out of bankruptcy. This could be one of the reasons behind a strong bounce in Cineworld share price. However, I’m still skeptical as the price action has manipulation written all over it.
Cineworld Share Price May Hit 2p Soon
The technical analysis reveals that the LON: CINE price has broken out of the downward trendline, as visible in the following chart. This breakout may take the price toward 2p. Nevertheless, the outlook on the higher timeframe remains bearish.
For Cineworld share price forecast to avoid a bearish outlook, the price needs to break above 7p, which is the range high and a major resistance on a higher timeframe. Furthermore, the management also needs to cut massive operating losses once the company emerges out of bankruptcy.
In the meantime, I’ll keep sharing updated outlook on LON: CINE in my free Telegram group that you’re welcome to join.
