Carnival Stock Defends $11; Bull Trap Building up in CCL Stock?

CCL stock price defended the $11.00 level and showed a minor pullback of 15% from the lows. Buyers are trying to halt the downfall and break the chain of lower-low swings.

Carnival stock price is in a downtrend but if the price manages to push the price above the 50-day EMA, then the trend may reverse. The 50-day EMA negatively intersected with the 200-day EMA, indicating bearishness. So, the reliability of the recent pullback remains doubtful.

In the last four months, Carnival Corporation stock price has been inside the bears’ grip and slowly eroded the previous gains.

However, in Q3 earnings, the company reported positive earnings. Despite that, the stock price did not recover and continued the downfall. At the beginning of November, CCL stock price took support near $11.00 and reversed upward.

Meanwhile, the broader market indices witnessed short-term buying because the Federal Reverse kept the interest rates unchanged. So, it might be one of the reasons that triggered the upmove in the CCL stock.

In the previous session, Carnival Corporation stock price closed at $12.26 with an intraday decline of -2.31%. The market capitalization stands at $15.32 Billion.

Will CCL Stock Price Hold the Recent Gains?

CCL stock price recovered but the buying volume did not witness any spike. It shows that the pullback rally is not derived from genuine buyers.

Till the Carnival stock price is trading below $15.27, the sellers will remain active. However, if the overall market continues to perform well and CCL shares break out of the $15.27 hurdle, then bulls might take control and push the price toward $18.00.

On the other hand, if the price faces rejection from the EMA, then it might test the previous swing low again.

Carnival Stock Price: Indicators Bullish But Price Action Bearish

Carnival stock price rose 12% last week and formed a bullish engulfing candle. Buyers need to give the follow-up momentum to show the confirmation of the upside reversal.

Technical indicators like RSI are reversing upward from the oversold territory denoting mild bullishness.

The MACD curve also displayed a positive crossover and histogram bars also turned green, favoring the bulls. The supertrend says, that till the CCL stock price is below the $12.87 level, the trend will remain down.

Conclusion

CCL stock price took support near $11.00 and showed a minor recovery. However, the price action indicates the recent up move is temporary and the price might face rejection from higher levels.

Technical Levels

Resistance levels: $15.27 and $18.00
Support levels: $10.84 and $10.00

Disclaimer

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