With cruise lines attracting renewed interest for their potential to benefit from easing travel restrictions in the future, Carnival Corp. (CCL) returned to the Green Favored Zone of the SIA S&P 500 Index report yesterday from a brief dip into the yellow zone. Yesterday CCL climbed 80 spots to 58th place.Back in February, Carnival Corp. (CCL) shares completed a bullish Ascending Triangle base with a breakout over $25.00. Since then, the shares had been consolidating their gains with the $25.00 round number reversing polarity to become new support and the $30.00 round number emerging as resistance. Yesterday, the shares blasted through the top of that trading range to signal the start of a new upleg within the recovery trend that started in March of 2020. Based on a measured move from the ascending triangle, initial upside resistance may appear near $37.00, followed by $40.00 where a round number, pre-crash support level and a measured move from the rectangle cluster, and then near $45.00 on trend. Initial support moves up toward $27.00 from $25.00.
Carnival Corp (CCL) has come under renewed accumulation recently, launching a new high pole by rallying up off of a successful retest of the $25.00 round number and prior resistance becoming new support following a breakout that also snapped a downtrend line back in the winter. Yesterday, the shares blasted through $30.00 to complete a bullish Spread Double Top pattern, building on previous breakouts confirming the start of a new upleg.
Horizontal and vertical counts from recent positive pattern completions suggest potential upside resistance tests on trend near $35.75, then $37.95, $42.70 and $45.35. Initial downside support appears near $28.75 based on a 3-box reversal.
With a bullish SMAX score of 7, CCL is exhibiting strength against the asset classes.
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