Shares of Norwegian Cruise Line Holdings, Ltd. (NCLH) have weakened from their best levels seen in December. We should be excited about the potential for travel in 2021 but are perhaps rethinking the likelihood of traveling the seas again.
Let's check out the charts before pulling up the anchor.
In this daily bar chart of NCLH, below, we can see that the shares have made a recovery from their March depths but they still have a very far journey to regain their early 2020 levels. Prices are in position to retest the rising 50-day moving average line.
The daily On-Balance-Volume (OBV) continues to weaken from its early December high. The Moving Average Convergence Divergence (MACD) oscillator is pointed down toward the zero line.
In the weekly bar chart of NCLH, below, we see some bearish clues. Prices are above the rising 40-week moving average line but the positive slope of the 40-week average is a new event and could be reversed without too much trouble.
The weekly OBV line shows a saw-tooth rise from late July and it probably will not take much to break this upward movement. The MACD oscillator is just slightly above the zero line and this could be reversed in the weeks ahead.
In this daily Point and Figure chart of NCLH, below, we can see a potential downside price target in the $19 area.
Bottom-line strategy: NCLH could be headed back to port or look for a return to the $19-$15 area in the weeks ahead.
