In my June 12 review of Carnival Cruises (CCL) , I wrote that "Traders who went long CCL in May and added to longs at $12 should continue to hold those positions. Raise stops to $11. $21 and $27 are my price targets now."
Prices stalled in the $16 area earlier this month and have gapped lower Monday. Let's check out the charts and indicators to see if we need to tweak our strategy.
In this daily bar chart of CCL, below, I can see how prices are pulling back. Prices gapped higher earlier this month and gapped lower today. Some old-time chart watchers will probably call this an island top reversal. Prices are still above the rising 50-day and rising 200-day moving average lines. The On-Balance-Volume (OBV) line stalled in mid-June and could lower today. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside for a take -profit sell signal.