In his first Executive Decision segment of Thursday's "Mad Money" program, host Jim Cramer spoke with Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings (NCLH) .
The cruise line operator seems to be kicking back into high gear as the pandemic winds down. Del Rio said Norwegian Cruise Line was the first to require that all customers and staff be fully vaccinated. He said bookings are the strongest they've ever been as consumers are anxious to get out and have fun.
Norwegian plans to have 100% of its ships sailing again by April 2022 and Del Rio said sales are strong for next year and 2023.
Let's check out the charts and maybe the cabins after that.
In our last review of NCLH on Aug. 12 we wrote, "The price of NCLH corrected in June and July but it doesn't look like the weakness is over just yet. NCLH probably needs more sideways price action before renewed gains. The downside price targets on the Point and Figure charts are not helping."
In this updated daily bar chart of NCLH, below, we can see that prices retested the July low in August but failed to break down to a lower low. Prices rallied into late September before another pullback. NCLH is trading between the 200-day and the 50-day moving averages. That condition should not last long. The On-Balance-Volume (OBV) line made a low in August but has not really improved, telling us that aggressive buying has not returned just yet. The Moving Average Convergence Divergence (MACD) oscillator is sitting on the zero line and could turn upward to a buy signal if prices improve.
In this weekly Japanese candlestick chart of NCLH, below, we can see that prices have been struggling below the 40-week moving average line. The trading volume has dried up over the past few months but the weekly OBV line has managed to remain strong. The MACD oscillator is just below the zero line and will respond quickly if prices move up or down.
In this daily Point and Figure chart of NCLH, below, we can see an uptrend from late July (look for the 7 on the chart) and an upside price target of $32. That's a big change from our last inspection.
In this weekly Point and Figure chart of NCLH, below, we can see a price target in the $39 area.
Bottom line strategy: Even if you are not into cruising you may want to go long NCLH around current levels risking to $24. We could see gains to $32 and then $39 into early 2022. Further gains are possible in 2022.