Shares of Carnival Corp. (CCL) are under selling pressure Thursday as investors and traders are disappointed yet again in the company's quarterly numbers. The stock was down as much as 10% on top of steep declines since the beginning of 2018.
Let's tie up in port and check out the charts.
In the daily bar chart of CCL, below, we can see that prices have been moving from the upper left to the lower right or just a simple way to express a downtrend. CCL is below the declining 50-day moving average line and the bearish 200-day line. Thursday is the fourth downside price gap on this chart -- not what I would call an endorsement.
The On-Balance-Volume (OBV) has been listing lower in the water and the Moving Average Convergence Divergence (MACD) oscillator just turned down from below the zero line for another outright sell signal.
In the weekly bar chart of CCL, below, we can see that prices are below the declining 40-week moving average line.
For some strange reason the weekly OBV line looks positive while the MACD oscillator is bearish.
In this Point and Figure chart of CCL, below, there is a bearish price target of $41.
Bottom-line strategy: CCL has bounced before after downside gaps but that does not give me any confidence that it could happen again. Stay defensive and take out travel insurance.
