CCL stuck in neutral pattern. CCL has been in neutral pattern since 07 April as price consolidates (red channel) at the 38% Fib ratio ($12.30) from the previous downtrend. Typically, a retrace to the 38% level indicates a strong trend, which in this case suggests CCL is still bearish. It's anyone's guess how long this consolidation period will last, and whether the breakout will be bullish or bearish but consider the following factors:
Price target recently downgraded to $13 (1)
CCL has enough cash/credit to stay afloat (pun) for at least 1 year, avoiding bankruptcy (2)
My personal sentiment is that stock will fall to $4 - $6. I just can't predict when this will happen.
Source:
(1) www.benzinga.com
(2) seekingalpha.com
