Riding the Cruise Lines
Examining Recent Price Action in the Big Boats
Risk/Reward setups in the cruise lines are looking more attractive. Some charts for consideration.
Carnival is in an 80% drawdown, not seen since COVID (GFC drawdown peaked near 70%).
The stock took out the 200 day moving average on the upside earlier this month, retested, and bounced. The arrows depict similar recent breakthroughs. The most recent two, which failed, occurred during downward sloping 50 day price action. The largest arrow shows a prior breakthrough, but with an upward sloping 50 day, something we currently have in place. The 200 day provides a limited pain downside price to play this off of.
I’m less sanguine on NCLH 0.00%↑ , which still needs to get through earnings on 2/23. They’re a considerably less leveraged company than CCL 0.00%↑ though.
RCL 0.00%↑ has been the outperformer, ripping since it's Jul '22 bottom. This looks like one that needs a breather.
