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) have traded sideways since the company reported a $1.64 billion loss during the first six months of 2020 driven largely by the coronavirus lockdown measures.
The cinema chain operator shares have traded sideways since it released its financial results and could either break higher or sink much lower as the winter season unfolds.
Investors and analysts are worried that the rising coronavirus cases across the globe could lead to further lockdowns, which could affect the company’s revenues negatively, as was the case during the first lockdowns.
Cineworld cannot afford to close its theatres again given the financial implications of such a move, but it may not have a choice if governments impose strict lockdowns to curb the spread of the second wave of coronavirus infections.
The firm is still in major financial troubles given its huge debt load and the fact that its theatres are operating at reduced capacity due to social distancing measures and its future does not look very promising.
I expect the stock to remain trapped within the current range over the short to medium term.*
*This is the author’s opinion, do not take it as investment advice.
Cineworld share price
Cineworld shares have traded in a range between a high of 51.72p and a low of 38.96p for the past few weeks.
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