Carnival Corporation Stock Tests Important Support Level

After a big selloff, shares of Carnival Corporation & plc CCL have reached an important support level.

The last two times they reached the $24 level, a rebound followed. But if this support breaks, a large and rapid move lower may follow.

Support is a large concentration of buyers gathered at the same price. At these levels, there is more demand than supply for the stock. This is why selloffs end when they reach them.

When the support breaks, meaning the stock trades at a lower price, it shows the buyers who formed the support are gone. They have finished or canceled their orders.

With this large amount of demand taken off of the market, the stage could be set for a new downtrend to form.