Cineworld share price has been range-bound for the past few months as concerns about the company grow. The CINE share price has crashed more than 93% since the start of the year. The British cinema operator has a total market capitalization of 32.57 million pounds. Cineworld share price closed markets 0.94% higher at 2.372p on Monday. It hit an intraday high of 2.510p before a further retracement.
CINE Financial Stance
Cineworld Group Plc is a British cinema operator headquartered in London, England. Cineworld is the world’s second-largest cinema chain after AMC Entertainment Holdings Inc. As of March 2018, Cineworld was the largest cinema operator in the UK by box office market share.
Cineworld share price has been range-bound for the past few months as investors raise their concerns about the company. Earlier in September, Cineworld filed for bankruptcy in the United States as the company struggled to rein in its massive debt.
Cineworld, the parent company of Regal Cinemas, runs more than 9,000 screens in more than 10 countries and employs around 28,000 people. According to the company, difficult conditions for movie theaters, as well as high debt stemming from its $3.6 billion purchase of Regal prompted it to file for bankruptcy.
On Monday, US bankruptcy judge, Marvin Isgur, granted Cineworld access to more than $1 billion in funds after settling with its landlords and lenders. The judge signed the order on Monday which includes Cineworld borrowing an additional $150 million and making a $1 billion debt repayment.
Despite the stagnant movement in its shares, there is still hope for the cinema operator in form of blockbuster movies set for release in the fall and winter seasons. Among the much-awaited blockbuster movies are ‘Black Adam,’ which debuted on October 21, and ‘Black Panther 2: Wakanda Forever’, set for release on November 11.
Cineworld Share Price Forecast
Taking a closer look at the 2-hour chart, the Cineworld share price has been range-bound for the past few months. The stock is moving slightly below the 25-day and 50-day exponential moving averages (EMA). ITS Relative Strength Index (RSI) is at 49.
Therefore, investors are eyeing the outcome of the blockbuster movies hoping it will rally the CINE share price. If this happens, the bulls will be targeting the next resistance at $5. However, a move below the important support level at $1.9 will initiate a bear run.