What's Next For Carnival Stock After This Key Support Break?

Carnival Corp. CCL shares were trading lower in Monday's session with other cruise-related stocks after a report suggesting a federal appeals court temporarily blocked a previous ruling.

The ruling had favored a Florida lawsuit challenging pandemic-related regulations on Florida-based cruise ships.

Carnival was down 5.93% at $19.68 at last check.

See Also: Why Cruise Line Stocks Are Trading Lower Today

Carnival Daily Chart Analysis

• Shares tested support for the fourth time but were unable to hold and are falling toward the next key level.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key Carnival Levels To Watch

• The stock recently broke below the $25 level that was holding as support and now sits in a sideways channel, potentially nearing the next area of support.
• The stock may find support near the $18 level, as this is an area that has previously held as support.
• The Relative Strength Index (RSI) sits at 19 and is well into the oversold area. The RSI being oversold means there are many more sellers than buyers in the stock.

What’s Next For Carnival?

Bulls would like to see the stock bounce near the $18 level and start heading higher. If the stock can start forming higher lows it may be able to get back over the resistance level near the $25 mark. Consolidation above this level may let the stock see further bullish moves.

Bearish traders would like to see the stock continue to fall and break below the potential $18 support. If the stock is able to cross below this support level it may see a further bearish push. Bears want to see the stock continue to trade below the moving averages for sentiment to stay bearish.