Choosing a Cruise

• Posted by Greg Harmon
• on November 4th, 2013

It is that time of year when families start to book their cruises for the winter break. I can’t understand why people want to spend their time roaming the oceans instead of exploring some real place, but it happens. SO instead of booking a cruise it is time for me to choose a cruise company, for a trade. There are two that interest me. Take a look.

Royal Caribbean Cruises, $RCL, has just broken out of a rising consolidation zone. It popped over the trend resistance and ran higher. Now after a pullback to 42 it is moving back higher with a Measured Move to 49.50. The RSI is holding strong near 70 but not overbought and the MACD is level. It may need some more time here before it moves up, but a break over 43.50 is a trigger to get long for a run higher to that Measured Move.

Carnival Corporation, $CCL, is the other. This also had a run higher from a bottom, at 31.45 in this case. After a pullback it is moving higher and has already triggered over the previous high at 35. It has a Measured Move to 38 which is right where it has been stopped before. The last hurdle to an entry is a move over the Simple Moving Averages (SMA). These can trap a stock and so a move over the 200 day SMA at 36.17 would trigger an entry.

Which one would I like better if I was stranded on a desert island and could only have one (a possibility if you actually took the cruises by the way)? I would go with Royal Caribbean, because it has already cleared a lot of previous trading history where Carnival is still deep in the last 12 months price history.

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