Why Carnival's Bullish Move Today Could Lead To A Major Breakout

Carnival Corp. (NYSE:CCL) shares are pushing higher in sympathy with the rest of the sector. The cruise segment as a whole is seeing a green day and has been very volatile lately, possibly due to investors weighing the impact of omicron on travel demand.

Carnival was up 8.52% at $21.66 at last check.

See Also: How To Buy Carnival Stock

Carnival Daily Chart Analysis

• Shares have been climbing toward resistance in what traders call an ascending triangle pattern. The stock has previously seen resistance as well as support near the $25 level, indicating it is a key zone for the stock. This area may hold as resistance in the future as the price sits below the level. The higher low trendline may act as an area of support.
• The stock is trading above the 50-day moving average (green) but below the 200-day moving average (blue), indicating that it looks to be consolidating. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as an area of resistance.
• The Relative Strength Index (RSI) has been pushing higher the past couple of weeks and now sits at 64. This shows that there is now more buying pressure in the stock than there is selling pressure overall.

What’s Next For Carnival?

The stock has been pushing higher for the past couple of months and is now near the resistance level. CCL could see a breakout if it can cross above the area of resistance with strong volume.

Bullish traders are looking to see the stock to cross above the $25 level and hold above it for a time before pushing higher on another leg up.

Bearish traders want to see the $25 level hold as resistance and for the stock to begin to dip once again. Bearish traders also are looking for the RSI to fall back below the middle line, which would show that the overall selling pressure is once again greater.