The Carnival share price will be in focus in London today after the company made its first voyage from the United States since the pandemic started. The stock ended last Friday at 1,667p, which was about 12% below the highest point on June 10.
What happened. Carnival, the biggest cruise line in the world, made its first trip from the US during the weekend. The sail by Carnival Vista started from Galveston on Saturday while Horizon started its voyage on Sunday. The first trip from Galveston will visit ports like Roatan, Mahogany Bay, and Cozumel. All passengers were required to show a proof of vaccination.
The new cruise started at a time when demand for such leisure activities is increasing. For example, the company says that the volume of future cruises has jumped by more than 45%. At the same time, customers in the ships are spending more money on casinos, massages, and luxury meals.
Still, the biggest challenge for Carnival and other cruise lines is that the Delta variant of the virus is spreading fast globally. Also, there is a major risk since vaccinated customers can still get the virus.
The Carnival share price has declined by double-digits recently after the management hinted at a $500 million capital raise.
Carnival share price forecast
The daily chart shows that the CCL share price has declined substantially in the past few weeks. That has seen it move to the 25-day and 50-day exponential moving averages (EMA). It has also moved back to the rectangle pattern whose support and resistance is at 1,480p and 1,850p.
Therefore, there is a likelihood that the stock will jump to the resistance level at 1,850p as investors price-in faster revenue growth as the sector recovers. On the flip side, a major Covid-related incident will see the shares drop to the support at 1,480p.