Shares of UK cinema operator Cineworld Group Plc (LON: CINE) today surged 22.6% higher reversing a losing trend that has been in place for the past nine weeks, with the exception of a single week.
The stock rallied driven by a new wave of buyers at a key support level given that there were no major news events from the company to justify the rally. However, the company’s shares were trading near a major support zone that has been in place since 2007 when it went public.
The support level also represented its all-time lows presenting a low-risk high reward potential trade setup. No wonder buyers stepped in and pushed the company’s stock price higher.
Cineworld share price
Cineworld shares today surged 22.69% higher to trade at 42.82p and was headed higher at the time of going to print.