The Cineworld share price gave up its earlier gains of the day and ended the day lower by 4.27%, as additional selling hit the stock. The stock had earlier lost 7.75% on Tuesday, and Wednesday’s loss puts the Cineworld share price on the wrong end of a three-day losing streak.
Investors appear not too enamoured with the stock at the moment, despite the company securing waivers on debt repayments in February. The company also had a solid opening to its inaugural Cineworld Dat in the UK, as it admitted 650,000 persons across its 100 Cineworld sites in the UK and Ireland.
Ten institutional analysts have a HOLD recommendation on Cineworld, with a median price target of 60.20p over 12 months. This means that there is room for the Cineworld share price to recover even though the stock may undergo a selling phase before this happens.
Cineworld Share Price Outlook
An attempted return move may follow as the bears force the triangle’s breakdown. However, rejection of this return move at the triangle’s border could lead to further price deterioration that targets 31.72 (7 August 2020 low). Below this level, the 29 October 2020 low at 23.49 and the 5 October 2020 low at 15.55 form additional destinations to the south.
On the flip side, a bounce on the 31.72 price mark that takes out 39.95 is needed to invalidate the measured move of the triangle. This move would also open the door for a march towards 46.52. Above this barrier lies additional resistance barriers at 56.01 and 60.26. These become viable if the advance continues.
Cineworld: Daily Chart
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