The Cineworld share price has been consolidating for the past month. At the time of writing, CINE was trading more than 3% lower at 62.64p. Its total market capitalization currently stands at £855.63 million.
CINE Fundamental Analysis
Just like most cinema chains, the resurgence of the coronavirus pandemic linked to the highly contagious Delta variant has weighed heavily on Cineworld.
The company’s revenue for the first half of the year slumped 59% to $292.8 million compared to the first half of 2020. The company’s losses contracted, reporting a pre-tax loss of $576.4 million compared to the $1.6 billion loss in the first six months of 2020.
Recently, Cineworld announced its plans to list all or part of its business in the US as it warned that there was no safe bet that it would recover from the pandemic. Cineworld is the world’s second-largest cinema chain after AMC.
In its announcement, the company stated that it was considering ways to capture some liquidity in the US markets. The company is thinking of listing either the overall Cineworld Group or a partial listing of Regal, its US cinema network.
The company’s potential dual listing could boost the Cineworld share price, as it would give the firm access to the world’s largest capital market. Investors seem optimistic about the consideration, hoping that Regal would receive the same support as AMC.
Cineworld Share Price Outlook
The four-hour trading chart shows that the Cineworld share price has been range-bound for the past month. The stock has been 60.42p and 68p. It hit an intraday high of 64.50p before reversing.
It is trading below the 100 and 200-day moving averages, hinting at a negative trajectory. It is also below the 100-day exponential moving average.
Therefore, if the bearish trend continues, the bears will be eyeing the next support at 55.80p. On the flip side, a move past the 100-day EMA at 68p will invalidate this view. If this happens, the bulls will be targeting the resistance along the 200 DMA at 77.50p.