Hi everyone! Here’s the next stock I’ll be covering:
Carnival Corporation (NYSE: CCL)
In the long-term, CCL is trading in a significant bullish megaphone pattern. Could this signal a resurgence in cruises in the coming years? Note that it has been rejecting off the red resistance trendline since 2018, but has since broken out of it, backtested it and is forming a sustainable bullish trend with higher highs and higher lows. However, a case can still be made for it being a bear channel until it can make a higher high above 31-32.
CCL is trading in a falling wedge consolidation pattern with lower highs and lower lows, but an increasingly tight range. I note that a mild bullish divergence has formed on the touch of the lower trendline in this instance, which is indicative of a possible trend reversal. However, CCL has yet to retrace 50% of its move up from the 10.84 swing low to the 19.74 swing high. We could see a quick sweep of 15.30s before it pushes higher.
If this falling wedge fails, then we could be staring at a similar type of retracement to the previous occasion, with bounces at the respective retracements until we hit the 78.6% Fib retracement level (~ 12.74).
A breakout of this falling wedge pattern could see a retest of the 17.24 level, and subsequently a push towards the gap fill between 18.34-18.53. The move should ultimately extend above the prior swing high towards the 21.50 imbalance.
Hourly timeframes seem to agree too. Note how bullish divergence continues to hold as RSI makes higher highs. Buying this move down will likely pay off in the coming days.
Sentiment: BUY
Summary (with Price Targets - NFA):
Long-term bullish megaphone pattern, with a short-term falling wedge consolidation pattern. Measured move should be to 21.50s and higher in the longer term.
Accumulation on CCL can take place at current levels. However, if the consolidation pattern fails, then it is very likely to retrace all the way to 12.70s, where it would be a strong buy. Alternatively, investors can consider averaging down into that level to ensure a decent cost average.
Currently, the market is still in a relatively strong window, at least until the back end of the month. Looking at post-OPEX as a period of relative weakness.
Alright, that’s it for this newsletter. See you in the next one!
@TigerStars @TigerWire @CaptainTiger @TigerEvents @MillionaireTiger
$Carnival(CCL)$ $Royal Caribbean Cruises(RCL)$ $Norwegian Cruise Line(NCLH)$ $SPDR S&P 500 ETF Trust(SPY)$ $iShares Russell 2000 ETF(IWM)$ $Invesco QQQ Trust-ETF(QQQ)$
Comments