Cineplex consolidation after massive sell-off
Updated
Daily bullish divergence on the RSI - the price of CGX has printed a lower low with a higher low RSI, with the daily MACD also crossing over. Price has been consolidating on the 10 day MA. Current price reflects people's emotions and fears about the company and industry in general - and this can mean you can bet against that emotion and win big potentially (and can lose big, potentially). Covid-19 has been depressing for the entertainment industry and its uncertainty has been the driving force of negative momentum over the last couple of months. Risky bet, but might pay out in the long run.
Note
After 2 successful vaccine announcements (Pfizer , Moderna) with 90% + effectiveness, CGX is currently trading above $7 - Definitely a great sign so farNote
Played out very nicely over the last few weeks. Feels like the price has already priced in partial lockdowns in parts of Canada as well as vaccine announcements. Only thing that will tank this will be a FDA disapproval of the vaccine. I don't think logistical issues will be much of an issue in the long term.
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