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Royal Caribbean Cruises Ltd - (RCL) - February 9, 2023

Royal Caribbean Cruises continues to sail near the top of the Green Favored Zone of the SIA S&P 500 Index Report. Since returning to the green zone from a quick dip down into the yellow zone, the shares are up 25.5%. Yesterday, RCL climbed another 2 spots to 4th place and it is up 155 positions in the last month.

After base building for six months, Royal Caribbean Cruises (RCL) have decisively broken out to the upside. An uptrend of higher lows has been emerging since October, and late last year, a Golden Cross (blue circle) indicated that things were turning around. The shares’ recovery has accelerated this month with RCL completing a bullish Ascending Triangle base and then putting an exclamation point on it by snapping a downtrend line with a breakaway gap on a volume spike.

Initial upside resistance appears at previous highs in the $87.50 to $90.00 area, then closer to $100.00 where a round number, measured move from the base and the late 2021 peak cluster. Initial support appears near the $70.00 and $65.00 breakout points.

After bottoming out back in July, Royal Caribbean Cruises (RCL) spent the second half of last year steadily clawing back lost ocean, and by December had snapped out of its previous downtrend. The shares’ recovery has accelerated this month after a correction ended in a bullish Bear Trap where RCL broke down by one row and reversed sharply upward. In recent weeks, the shares have staged a bullish Double Top breakout and extended their advance into a High Pole.

Previous column highs suggest potential upside resistance may emerge near $85.15, $94.00, or just below the $100.00 round number. Initial support appears near $68.50 based on a 3-box reversal.

With a perfect SMAX score of 10, RCL is exhibiting strength across the asset classes.

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