Cineworld Share Price Targets New Lows As Bears Gain Momentum
Cineworld (LON: CINE) share price has been in a downward spiral since the company failed to gain any relevant offers for its UK & US businesses. The shares of Cineworld Cinema are once again trading close to their historic lows after a slight bounce in May 2023.
On Monday, the benchmark FTSE 100 index gained 35 points as the UK shares showed a positive sentiment. Cineworld shares opened higher today, but the candle turned red as the day progressed. At the time of writing, the shares were still trading 3.95% above their previous close. The latest analysis suggests the Cineworld stock is still a risky investment as there are no major signs of any reversal.
Cineworld Cinema Lenders Back Restructuring Process
According to the latest Cineworld news, the second largest theatre-chain operator of Erurope is set to exit bankruptcy in July 2023. This became possible after the company received support from more lenders. Cineworld filed for bankruptcy in September 2022 and has failed to find any suitable offers for its major businesses.
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. Due to this reason, Cineworld share price bounced at the start of this month. However, it turned out to be a dead-cat bounce as the shares are tanking once again.
Cineworld Share Price Eyes New Lows
Technical analysis of LON: CINE reveals that the bulls have failed to gain momentum despite a breakout from the downward trendline. In the coming days, I expect the shares to retest the bottom of the 0.6p – 0.8p demand zone. A break below this support will be very bearish.
However, for the Cineworld share price forecast to avoid a bearish outlook, the price needs to break above 7p. This, together with its exiting bankruptcy, may cause a relief rally in the shares of the British cinema operator, which has been in free fall since last year.
In the meantime, I’ll keep sharing updated outlook on LON: CINE in my free Telegram group that you’re welcome to join.