NCLH looks primed for some profit selling
Ever since the news broke out that NCLH could support itself without income for up to 18 months, this stock has been on fire. Jumping from around 10.00 per share all the way up to 22.00 per share. I believe that this impulse has run its course and that we may see a bit of a sell off here as traders lock in profits. If you notice the yellow downward sloping resistance. This was established during the original sell off in January that started the downward spiral of NCLH. The RSI indicator is showing that NCLH is in the overbought range and due to the massive selling after the price spike in the pre-market on Friday, I anticipate that there is some more downside to be seen. I think that price may touch the downward yellow resistance as momentum dies off. Could see some support at around 20.50 and 17.50, however if those levels do not hold I would expect price to dip down to test the green downward support line at around 12.50. I think if you can enter a short position on any impulsive move up, there is some profit to be made as sellers reclaim momentum for a little while.
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