Carnival Corp. (CCL) sold off sharply yesterday. Prices gapped to the downside. Volume was heavy. Not pretty and maybe some traders and investors got "sea sick."
Let's check out the charts and indicators to see if there are more rough seas ahead or if our travel agent might be recommending a long position.
In this daily bar chart of CCL, below, we can see a choppy chart with a downtrend from late January. Both the 200-day and the 50-day moving averages turned bearish in early April and by the middle of April the 50-day line moved below the 200-day line. This decline generated what is commonly called a dead cross and is what it seems - bearish.
The On-Balance-Volume (OBV) line was moving higher from the middle of April but it weakened in June suggesting more aggressive selling. The 12-day momentum study made a new low in early June so we do not have a bullish divergence to indicate a slowing of the decline.
In this weekly bar chart of CCL, below, our indicators are all bearish. Prices are in a downtrend and below the declining 40-week moving average line. The weekly OBV line has been declining for months and the weekly Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a bearish configuration.
In this Point and Figure chart of CCL, below, we can see the decline in prices without a gap. A downside price target of $54 is indicated. Support or potential support does not appear until $51 - the last high.
Bottom line: The charts and indicators of CCL are still pointed down and we might not see CCL pull into port until the low $50's.