The Carnival Share Price Has Popped. Now What?

The Carnival share price is on a bullish momentum even as the Omicron variant dampens the mood. The CCL stock jumped by more than 9.58% in London and by more than 8% in New York. This happened as investors reflected on the strong demand for its services.

Carnival is the biggest cruise line in the world. It competes with the likes of the Royal Caribbean, Norwegian, and several smaller companies. Because of the non-essential nature of its business, Carnival has been in the spotlight amid a surge in the number of Covid-19 cases.

In the past few weeks, the number of Covid cases has been rising. For example, the US is releasing more than 120k cases every day while the UK is publishing more than 90k cases. Therefore, investors are concerned about new lockdowns that could push more people to avoid the industry.

Carnival published relatively strong quarterly results this week. The firm said that its total customer deposits had surged to more than $1.2 billion while its liquidity has jumped to more than $9.4 billion. This liquidity happened because of a $2 billion senior unsecured notes the firm issued in October. 

The firm also sounded optimistic about its forward bookings. It said that its cumulative bookings for the second half of 2022 and the first half of 2023 were at the higher end of historical ranges.

Carnival share price forecast

The four-hour chart shows that the CCL share price formed a double-bottom pattern at around 1,177p recently. In price action analysis, this pattern is usually a bullish sign. The upper chin of the pattern was at about 1,365p. The stock managed to move above this chin on Tuesday.

It has also moved to the 38.2% Fibonacci retracement level while the Relative Strength Index (RSI) has been rising. Also, the 25-day and 50-day moving averages are about to make a bullish crossover. 

Therefore, the Carnival share price will likely keep rising as bulls target the 50% retracement level at 1,470p. On the flip side, a drop below 1,350p will invalidate this view.

Carnival share price