Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Cineworld Group plc (LON: CINE) is down 76.9% year-to-date as investors wonder whether there is potential for a further decline in the movie theatre operator’s price in future.
The short answer is yes, Cineworld shares could drop much further from their current price given the technical setup that had formed on its stock price chart.
The company’s shares crossed back below 52p on 10th September and have been unable to rally convincingly back above this crucial support/resistance level since then.
The technical setup does not look promising and we could see Cineworld shares fall all the way to 35p where there is another major support level.
However, we would need a major fundamental trigger for such a move to happen. The only major scheduled event for Cineworld is the release of its interim earnings report set for Thursday next week.
Cineworld stock is likely to keep trading directionless until when the interim results are announced, after which we are likely to see a major move in the company’s stock price. The direction of such a move would depend on whether the results are positive or negative.
Cineworld share price
Cineworld shares are trading down 76.9%% year-to-date and are likely to keep falling if the technical price setup does not change in the near future.
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