The ‘Cruise Lines’ are moving well today following positive news regarding the industry: Norwegian Cruise (NCLH) Stock Up on U.S. Cruise Resumption Plan – May 25, 2021 – Zacks.com.
Shares of CCL are trading at new May highs with the help of today’s solid gain. The stock has been rather volatile since its April 7th earnings report: Carnival stock surges as Q1 losses widened to $2 billion but cash burn was less than expected – MarketWatch.
The rally this week has pushed shares back up to the upper band of the post earnings consolidation. CCL is now well below overbought levels despite sitting very close the the 2021 highs. We believe the stock is set up well for more upside. A close above $29.30 would be its best weekly close of the year. CCL closed out its earnings week(4/9) at this level.
On the downside a close back below $26.00 would violate last week’s low sending a clear warning sign that more sideways action is ahead.
Long CCL in our Tactical Opportunity Portfolio