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Here’s Why Cineworld Shares Surged 22.6% Higher Reversing 9-Week Losing Streak

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Updated: 10 August 2020

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

Tradingview chart of Cineworld share price 10082020

Cineworld shares today surged 22.69% higher to trade at 42.82p and was headed higher at the time of going to print.