National Cinemedia(NCMI) Stock Plunges 2.09% in Two Days

National Cinemedia(NCMI) shares fell 0.42% today, marking the second consecutive day of decline, with a total drop of 2.09% over the past two days. The share price hit its lowest level since May 2025, experiencing an intraday decline of 2.97%.

The strategy of buying NCMI shares after they reached a recent low and holding for one week resulted in poor performance over the past five years. The strategy returned -30.78%, significantly underperforming the benchmark return of 56.99%. The excess return was -87.77%, and the CAGR was -13.81%, indicating substantial losses and a declining portfolio value. The strategy also had a high maximum drawdown of -63.06% and a Sharpe ratio of -0.16, highlighting its risk and volatility.

National Cinemedia's stock price has been on a downward trend, with a total decrease of 10.33% over the past 10 days. This consistent decline suggests a negative market sentiment towards the company. The increased trading volume on the last trading day, despite falling prices, is a potential early warning sign, indicating increased risk and volatility in the stock.

Several negative signals are present in the stock's technical indicators. Both short and long-term moving averages are giving sell signals, and the relationship between these averages also indicates a general sell signal. This technical analysis suggests that the stock is currently in a weak position and may continue to decline in the near future.

The stock is currently within a wide and falling trend, with predictions of a further decline of approximately 16.75% over the next three months. This long-term trend suggests that the stock may continue to face downward pressure in the coming months, and investors should be cautious when considering investments in National Cinemedia.

The Relative Strength Index (RSI) indicates that the stock is oversold, which could increase the general risk. An oversold stock may experience a rebound in the short term, but the overall trend remains bearish. Investors should monitor the stock closely and consider the potential for further declines before making any investment decisions.