Norwegian Cruise Line Holdings Ltd. (NCLH) reported a wider-than-expected loss to shareholders Tuesday morning. Let's check out the charts and indicators of NCLH and see if they are also taking on water.
In the daily bar chart of NCLH, below, I can see that share prices are testing/breaking the 50-day moving average line and testing the 200-day line. Trading volume has decreased over the past five months.
The daily On-Balance-Volume (OBV) line shows three tops since November. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In the weekly Japanese candlestick chart of NCLH, below, I see a mixed chart. Prices are above the 40-week moving average line (for now) but share prices are stalling at a lower high than November. The 40-week moving average line is bottoming.
The weekly OBV line is down from its November high. The MACD oscillator is just barely above the zero line.
In this daily Point and Figure chart of NCLH, below, I can see a potential downside price target in the $13 area.
In this weekly Point and Figure chart of NCLH, below, I can see a $12 price target.
Bottom-line strategy: Passengers are probably looking ahead to their upcoming cruise but investors have to deal with a weakening stock price. Avoid the long side for now.
