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Tuesday, 17th December 2019 12:17 - by Rajan Dhall
There was a recent price decline in shares of Cineworld after the Co. announced the plan to acquire Cineplex for C$34 per share in cash. Since then there has been a very bullish hammer candle form on the daily chart on Monday.
There was also a major amount of volume noted over the last week or so. The thing that stood out for me was the buy-side volume far outweighed the selling pressure.
There are a few resistance levels in place but the good news for the bulls is that the 200p psychological level held. On the upside, the 222p and 246p could act as sticky resistance zones if we see a price rise.
Looking at the volume at price indicator now, you can see the price area where the most activity took place was close to 260p. This could be seen as a mean value zone and with blockbuster hits such as Star Wars, Frozen 2 and the Joker hitting the screen we could see some upside. A break of the trendline and the 222p resistance would be a bullish signal but an attack of the 394p high could be a step too far.
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.