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Carnival Share Price Facing a Stiff Test At the 200-SMA/1602.2 Resistance

The Carnival share price continues on the path of recovery, following the closing of a new $2billion senior unsecured notes funding deal. The private offering is for 6% senior unsecured notes, which will become due in 2029. Interest will be paid to investors twice a year for the duration of the tenor, with the first callables starting in November 2024. 

The world’s largest cruise company expects to use the extra funding to cater to principal payments of outstanding debts in 2022 and cater to other capital and recurrent expenses. The pandemic badly hit the company, and as global travel and holiday trips return, Carnival Corporation is repositioning itself to get back on its feet. 

Carnival Corporation was recently named by Forbes as one of the world’s best places to work for women and was the only company in the cruise business to be recognized on the inaugural listing. 

The company recently recommenced its Caribbean cruises and this has led to an increase in investor interest, ramping up its share price from late October lows. The Carnival share price is up 1.41% on the day.

Carnival Share Price Outlook

The Carnival share price is currently testing resistance at the 200-day moving average, just shy of the 1602.2 resistance. If the price action can break these two barriers to the north, 1699.8 becomes a new upside target. The price action remains well below the 2021 peak at 1890.2 and the immediate barrier below it at 1800.2, seen on 16 March and 28 September.

On the flip side, a decline could follow from rejection at the 200-day moving average. This correction would target 1483.8 initially, with 1427.4 and 1373.4 serving as the immediate downside targets for the bears. 

Carnival: Daily Chart

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