The Cineworld share price recovery rally continued on Wednesday as investors remained optimistic about the upcoming James Bond movie. The CINE stock jumped by more than 1.25%, becoming one of the best performers in the FTSE 250 index. It is trading at the highest level since July 7th.
What happened? The Cineworld share price has been in the spotlight for several reasons recently. First, the rising number of Delta variant cases has led to slower recovery of the theatre industry.
Second, the company has expressed interest of taking its Regal Cinemas public in the United States. The management believes that doing this will give it the liquidity it needs to fund its recovery process.
Third, the company and other movie theatres have been in focus as the movie industry change. Unlike in the past, many movie studios like Disney and Comcast have streaming services that are growing at a fast pace. These companies are releasing the movies both in streaming platforms and in theatres. Therefore, there is a likelihood that many people will opt to pay a small additional fee to watch the movies at home.
The next main catalyst for the Cineworld share price is the upcoming James Bond film, No time to die which will premiere on Thursday. Analysts believe that the movie will see millions of people go to watch it in theatres this weekend. So, what next for the stock?
Cineworld share price forecast
The daily chart shows that the CINE share price has been in a major bullish trend in the past few weeks. Along the way, the stock has managed to move above the key resistance level at 71p, where it had struggled moving above in the past few weeks. The stock is also slightly below the 38.2% Fibonacci retracement level and moved above the 25-day and 50-day moving averages. Volume has held relatively steady.
Therefore, I suspect that the stock will maintain the bullish trend in the next few days as bulls target the next key level at 100p. However, we can’t rule out a situation where it retreats after the James Bond movie release as investors sell the news.