Carnival Corp. (CCL) could stay below decks for a while longer as the charts and indicators are not pointing to a fast turnaround in port just yet. Let's get our boarding pass and look at our stateroom (and charts and indicators) before saying bon voyage.
In this daily bar chart of CCL, below, we can see a price peak in late January followed by a five month voyage to the southern hemisphere. Selling became more intense last month as prices failed short of the 200-day moving average line, volume increased and prices gapped lower.
Sometimes a gap lower after a decline can prove to be an exhaustion gap but CCL has continued still lower since the price void.
The daily On-Balance-Volume (OBV) line is pointed down telling us that sellers of CCL have been more aggressive. The 12-day price momentum study is not showing a bullish divergence so the declining has not slowed.
In this weekly bar chart of CCL, below, we only see bearish signals. Chart support is two years old and may not materialize until the low $50's if it shows up at all.
The weekly OBV line has weakened for six months and the weekly Moving Average Convergence Divergence (MACD) oscillator remains bearish.
In this Point and Figure chart of CCL, below, we can see a downside price target of $54 which is not far away, but chart support does not show up until $51 and below.
Bottom line: CCL could stage an oversold bounce but with most of the indicators pointed down I would avoid the long side of CCL until a bullish divergence and some aggressive buying materializes.