Royal Caribbean 'Cruising'

One of the first things anyone should consider when buying a stock is to consider the trend. You know the old saying, “the trend is your friend” It’s just one of those rules that can keep you out of a bad trade, granted there are those that are contrarians that go against the trend, but you’ll generally things work out if you just follow the trend.

Royal Caribbean Cruises Ltd RCL is one of those stocks that has really good strong trend going since May. It popped up on our a Vibe Signal yesterday (which is when the price is above all of our moving averages). After it hit its low of around $66 in May, it has been in very textbook trend since.

A couple things that identify this a strong trend:

1. The breaking to new highs
2. It has a steady trend line
3. The moving averages are spread apart

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When a stock breaks to a new high, buyer sentiment is really strong. After RCL dropped to the low in May it made its way to $82 by July and broke out and then retested that level, the retest in the bounce really is the key technical point where the stock has some legs to continue the trend it's in and investors and traders are jumping on for the ride.

Having a steady trend line is another indication that stock has the potential to continue climb. When a trend is too steep or follows an erratic pattern more often than not that trend breaks, and breaks hard. With RCL there is a smooth ride up, the lows continue to get higher at pretty consistent clip.

Probably my favorite indication, is having the major moving averages rising. This signal when the 50,100,200 MA’s are rising is a signal I have used in the past and it is one of the most reliable for me.

With these triggers and current price action it simply points to a higher move in RCL, and suggest the stock could be poised to revisit its high around $99
If you’re looking to trade this to the upside, make sure you have a plan in place if the trade doesn’t work out. To help, we see a good stopping point if RCL reverses right around $92.

Jeff Yaede is the found of TraderMinute. TraderMinute’s purpose is to help option traders manage risk and earn more through the 100K Challenge® . Jeff has successfully achieved taking $3K to $100K multiple times, in just 4 months or less, by using the TraderMinute proprietary signals (Vibe,TrendRider, and 3/7 Ignitor) for his trade entries & exits.

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