Where Carnival Cruise Line stands with the Delta VariantWith the increase in cases for the delta variant to coronavirus, the question remains: will certain industries suffer again and will their stocks fall?
In the case of Carnival Cruise Lines (one of the larger cruise lines by market cap) my prediction, short and sweet is yes, yes their stock seems poised to fall.
Looking at the 5 year chart for $CCL NYSE:CCL and zooming out we can see that in the last 15 months, the trend for the stock price has begun to form a channel up pattern, which generally has a bearish breakdown once it moves past the supporting price (bottom line). What is an event that could be enough to have $CCL break the support on this channel up? The fear mongering, uncertainty and future mandates that may arise with the delta variant
Is this the time to buy the dip?
For investors that are bullish for future cruise lines rebounding, your dip buying entry is close, but we are not there yet in the case of $CCL. While the candles have moved below the 20, 50, 100 and even 200 EMA (generally a good time to buy a dip), the MACD indicator at the bottom is still right around the y axis (yellow square). In my opinion, the best time to enter for a long term hold in this scenario would be if the candlesticks above fell through the support and broke down, and the MACD indicator in the yellow square fell far below the y axis of the MACD histogram.
