The Cineworld share price has faced several twists and turns since the start of this month. Cineworld is the second-largest cinema chain in the world after AMC Entertainment. It was ranked the second-largest after buying Regal Cinemas. It has a total market capitalization of 899.587 million pounds.
Cineworld Price Action
Cinema chains have been treading on a rough path amid the resurgence of the Covid-19 virus. The coronavirus pandemic saw many businesses shut down as governments imposed strict restrictions to curb the spread.
Cineworld’s biggest rivals, AMC and Cinemark have also been trading in the red. The virus infections in the United Kingdom have been increasing at an alarming rate.
The recovery prospects of most British cinema chains were boosted by the positive performance of the UK box office. According to the UK Cinema Association (UKCA), the box office income in the UK and Ireland between July 30, 2021, and August 01, the same year, came in at 10.9 million pounds. This was the best performance since February 2020, before the pandemic.
The focus has now shifted to the company’s quarterly earnings next week scheduled for release on Thursday, August 12. The company expects its revenue and cash outflow for the first half of 2021 to come in at $700 million and $350-400 million respectively. The company has sold nearly 300 million tickets this year in the US up from 223 million in 2020.
However, the company is still cautious due to its net debt which is nearing $5 billion. At the time of writing, the Cineworld share price inched 0.15% lower at 65.38p.
Cineworld Share Price Stance
Cineworld share price declined 35.55% in the first two weeks of July before rebounding. It then jumped nearly 23% on July 16 and has been consolidating above the £60 level.
The CINE share price hit an intraday low of 63.50p. On the two-hour chart, it is trading above the 25 and 50-day exponential moving averages hinting at bullish signs.
In the near term, the price is likely to edge higher to find resistance at 68.60p. On the flip side, a move below the support level at $63.68 will invalidate this view.