Carnival Could Be SinkingCarnival has been rudderless all year, and now some traders may see downside risk in the debt-laden cruise-ship operator.
The first pattern on today’s chart is the sideways drift following a sharp rally in November and early December. Its failure to make new highs -- even early in the year when the S&P 500 was breaking out -- may reflect weak sentiment.
Second, the stock fell after results beat estimates on March 27. Does the market’s invisible hand see rougher waters ahead?
Next, CCL retraced half the post-earnings slide. That may confirm direction is pointing lower.
Fourth, stochastics are stalling near an overbought condition.
Finally, the short- and long-term trends may be bearish. The 8-day exponential moving average (EMA) is below the 21-day EMA. Also notice how the 50-day simple moving average (SMA) is crossing below the 200-day SMA.
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