Despite significant questions about the viability of the box office, Cinemark (CNK) continues to astound onlookers this year. Since the beginning of January, CNK stock has almost doubled in value. Driving the narrative have been stronger-than-expected financial performances. However, it’s also possible that the enthusiasm — at least in the near term — may be running out of steam.
At first glance, it doesn’t seem that way. Aside from nearly doubling on a year-to-date basis, CNK stock has returned about 51% of value for shareholders in the trailing six months. However, the past 30 days have been far less impressive, with the security only gaining a bit over 2%. On the charts, there may be a head-and-shoulders pattern developing, which if true would have bearish implications.
