Carnival Does Not Equal Party

It does not seem to matter that the widespread sickness was on a Royal Caribbean Cruise ($RCL), Carnival Corporation ($CCL) stock is feeling some heat. In fact Monday it confirmed a Head and Shoulders Top. This is a bearish pattern and targets a price objective of at least 36.21, smack dab in the middle of the 100 and 200 day Simple Moving Averages (SMA). The price action Monday showed some strength around the 50 day SMA, forming a Hammer-like candle. But that needs to be confirmed higher Tuesday to be a reversal sign, and the broader view shows that the RSI is moving lower and so is the MACD. These support more downside. It does not seem unrealistic that it could retrace back to the prior break out zone. Are you read for a cruise lower?

ccl

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