Shares of Royal Caribbean Cruises (RCL) turned south in January and have only had a minor recovery from a February low. Further declines look possible in the weeks ahead.
This chart of RCL, above, is bearish. The On-Balance-Volume (OBV) line is still pointed down from a December peak. Prices have rallied to the 50-day simple moving average line, which is still pointed down. Prices are well below the 200-day average line. The 50-day average crossed below the 200-day average line in February for a so-called "death cross."
In this longer-term chart of RCL, above, prices broke below the 40-week moving average line and the line is pointed down. The On-Balance-Volume (OBV) line is pointed down, telling us sellers are more aggressive with volume heavier on weeks when RCL closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish and there are no bullish divergences between the price action and the momentum study. Resistance in the $80 to $85 area is likely to cap the upside, and a close below $70 will weaken the picture and point the ship to the $60 to $55 area.