Chart of the Day: CCL Upgrade

0:00Time now for our chart of the day. Joining us for a breakdown has been Watson senior manager of Trading Services, Charles Schwab. Been earlier, the stock was actually higher, so we had a chance to say sailing higher, but now we don't. It's hitting a little bit of a speed bump this morning. Take us through what you're noticing in the chart. Sure, and good morning, Diane. Yeah, you're right. A little bit of an excursion this morning for Carnival, but seems now it's having a hard time getting untied from the dock right there at about 24 or so as a support level, it seems to be perhaps anchored to that point. At this point, I've got the ADX. The ADX indicator is a trend strength gauge, and you almost might think about it as what position the throttles are in if you're standing on the bridge of the ship here. And they're not really in full speed ahead. They're really kind of just sitting there pushing this up against that support level at this point. That ADX is agnostic to trend direction.

1:02It's just a trend strength gauge. So if this were moving to the downside, as it has been in the last little bit, the last few of these 15 minute candles, it's really not doing it with a lot of strength. And neither is it bouncing to the upside here. Now that 24 level of support becomes important as does 25 and 25 half when we start to look perhaps at the longer term chart, which is a little sunny year picture for Carnival here, Diane. Okay. Well, hopefully, you know, there's some sunny skies coming up for Carnival. I know they would like that. I'm sure based on this upgraded view, but take us through what you notice on the long term chart. Right. So I've got a two year daily chart here, just kind of add some context. And as we look back over the course of this timeframe, I've also got a 50 period moving average on here. That's that blue line. And you can kind of see that overall general uptrend. Now that being said, Carnival has had some periods of time where they have pulled back much like much of the market last April.

2:03We saw that pullback post the earnings announcement and then a pretty strong rally. Now they've been again sitting on this support level down here at about that 23 and a half to 24 level as a support with the possible reversal coming if price breaks out of that 26 26 half level. It's not there yet, but I want you to look in the RSI indicator down in the lower panel here. And you can see the three or four times that price has dropped into that lower reversal zone and every single time that prices dropped down into that level or that RSI indicator has been pushed that low. So prices responded by moving into a pretty strong uptrend. Now I'm not saying it's a party on the Lido deck right now, but think about this. You're standing in the pool on the ship. You're standing on your kickboard and you push it down into the water and eventually it's going to pop back up with some buoyancy. And that may be what's happening here. We've got an earnings announcement overhead that may start the party, Diane.

3:06Thank you, Ben. That has been Watson Senior Manager of Trading Services, Charles Schwab.