RCL - Winding Up Once Again? Royal Caribbean had crumbled in value, with it going from a previous high of $136 to $20 in a matter of two months. I have good faith that this summer holidays will be back on for the majority of the western world, but for how long? I'm not too sure. We have seen a strong comeback and I see potential for further upside with a attractive 1:3 RRR .
As you can see on the chart above a particular patterns seems to be appearing. Which is a tight bear flag / falling wedge , so strong momentum to the upside when it breaks. With a bull run averaging $32 on average... until a pullback happens, which is a sign of a healthy bullish trend .
One stock CCL has been almost identical to RCL's charting technicals. So, we can see it's not just a company recovering, it's actually a whole sector recovering.
CCL is based is in the UK which is doing very well in returning back to normal and having holidays in the coming months. Drop a like if you would like to see my analysis!
I have set a buy stop around the 0.5 - 0.618 fib level which has been respectfully met on all of the pull backs in the past year. Targets are set to $110, but profit will be taken along the way. Later entries are also in the play around the $90-91 mark. I would expect a strong break to the upside before entering... Be careful don't over leverage yourself.
Let me know what you think! Any constructive criticism or compliments would be greatly appreciated
