CNK is one of the companies in the leisure and entertainment industry that has made a great run in the past few months. The stock is currently trading about 200% from the October 2020 lows, but still roughly 30% below the pre-pandemic levels. Since Saturday, March 13, the company has started reopening movie theatres in the Los Angeles area. Today we have to see if the bulls take this piece of news as an additional catalyst.Looking at the chart,
CNK shows a solid uptrend defined by a diagonal channel with 20, 50, 100, and 200-day moving averages aligned. Today the shares have advanced during the European session and are poised to open above the monthly R1 Fibonacci pivot (RM1, $ 24.2). I want to see CNK holding the RM1 level. In this case, I will consider the next monthly pivot RM2 ($ 24.59) as the near-term price target. If upward momentum persists, a cross above RM2 will put diagonal resistance (green dashed line) to test and possibly pave the way towards the RM3 pivot ($ 27.84). Upon reaching RM3, the stock will revisit the high set on January 27. Therefore, I expect to see solid resistance at this price level.In order to have a game plan for a move below RM1 (triggered, for example, by a broader market selloff), I will be watching the 20-day EMA, which has acted as support quite a few times since December 2020. Below this EMA, the monthly pivot point (PM; $ 21.95) and the 50-day moving average will be in play.
Note
That's a great run! The first price target (RM2 level) has been reached.
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Disclaimer
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DISCLAIMER: I am not a financial advisor, and my scripts are for educational purposes only. Any trades you make are at your own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.