The Cineworld share price has been range-bound for the past two weeks. The CINE stock has been struggling to recover amid the resurgence of coronavirus cases. The company has a total market capitalization of £905.79 million. Cineworld is the world’s second-largest cinema chain, following closely behind AMC.
Just like most cinema chains, Cineworld has been on a rollercoaster since the onset of the coronavirus pandemic. The Cineworld share price is trading nearly 50% below its highest level in 2021 and more than 70% from its highest point in 2020.
The company’s interim results for the period ending June 30, came in lower than expected. The company reported an adjusted EBITDA loss of $21.1 million. Its monthly cash burn rate came in at $45 million per month, as its net borrowing exceeded $4.6 billion.
However, investors seem hopeful that a slate of blockbusters will attract customers over the next few months. In the last couple of months, many customers have returned to the theatres as Disney’s Black Widow and Fast and Furious 9 pushed attendance numbers higher.
The 1984 sci-fi hit ‘Dune’, as well as Marvels’ anti-hero Venom, will be released on 17th September. However, according to most investors, the long-awaited James Bond movie, ‘No time to die’ will most likely be the turning point for most cinema chains.
However, Cineworld will still have a hard time recovering its losses, as the more than $8 billion debt on its balance sheet remains a pressing issue.
At the time of writing, the Cineworld share price was trading 1.54% lower at 65.70p. The stock has been trading sideways for the past two weeks. It is trading 20% above its lowest level this year.
On the daily chart, it is trading below the 50-day exponential moving average and 50-day moving average. It has found support along the 25-day EMA.
Therefore, with the return of the highly anticipated movies, the Cineworld share price could hurdle 75.30p in the next few months. However, a move below July’s low at 55.80p will invalidate this view.