Cineworld plunges into $3 billion loss

Cineworld reports its first loss and the share price plunges 8%. However, the uptrend remains in tact, for now.

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Cineworld plunged into $3 billion loss as covid restrictions and cinema closures took their toll. This is the first loss in the company’s history and compares to profits of $212 million in 2019.

Revenue fell by 80% down from $4.3 billion to just $852 million.

Cineworld also announced that it raised an additional $213 million in funds to see it through the planned reopening starting next month.

Cineworld share price has traded within an ascending channel since early November. The price fell to a low of 88p today but found support from the confluence of the lower band of the ascending channel and the 50 sma. For now the bullish trend remains intact.

The sellers would need to break support at 88p in order for the selloff to gain momentum towards the 100 sma at 72p.

The buyers will be looking towards 100p the psycological level, high June 8 and mid-point in the ascending channel before targeting 125p.

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