After spending nearly 18 months stuck in the red zone of the SIA S&P 500 Index Report, cruse line Carnival Corp. (CCL) has roared back to life and soared 437 spots in the relative strength rankings in the last month. CCL recently returned to the Green Favored Zone for the first time since June of 2021 and is currently sitting in 17th place.
A major breakout is underway in Carnival Corp. (CCL) shares this month. Following a major selloff in the first half of 2022, the shares stabilized in the second half, trading mainly between $7.50 and $11.50. Since bottoming out near $6.00 in October, the shares have been under renewed accumulation.
A breakaway gap over $11.50 last week completed a bullish Ascending Triangle base, signaling that a new recovery trend has commenced. Initial resistance may appear near $15.00, a round number that has previously acted as both support and resistance, followed by $15.50 and $17.00 based on measured moves from the base. The $11.50 breakout point reverses polarity to become initial support.
Carnival Corp (CCL) appears to have completed a base and launched into a new recovery trend with a recent breakout that completed a bullish Spread Triple Top pattern. The current rally has since extended into its second bullish High Pole since the shares bottomed out in October, and has carried CCL to its highest level since June.
Initial upside resistance appears near $13.25 where a horizontal count, a downtrend line and a previous column low cluster, followed by a previous column high near the $15.00 round number. Initial support appears near $11.10 based on the combination of a 3-box reversal and a retest of the recent breakout point.
With a perfect SMAX score of 10, CCL is exhibiting strength across the asset classes.
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