Carnival Corp (CCL)

[Tha Part Time Er]

With a market value of more than $14 billion, Carnival is a global cruise company that operates voyages to around 700 ports under brands such as Carnival Cruise Lines, Holland America, and Princess Cruises. The Miami-based leisure travel company, which reported a $4.4 billion second quarter loss due to pandemic cancellations, has vowed to step up its ship-cleaning procedures when it resumes operations. Although Carnival stock has shed 63.6% on the year, it has recovered 50% in the past three months as of June 24, 2020. The company suspended its dividend and share buyback program in March to preserve liquidity.

The cruise line operator's share price broke above a three-month ascending triangle in early June on increasing volume. More recently, the stock has retraced to the pattern's top trendline that now provides a crucial support level. Those who buy here should look for a test of $30, where the shares may encounter resistance from a late February countertrend bounce and the downward sloping 200-day simple moving average (SMA). Protect downside by placing a stop under either the June 22 low or beneath the 50-day SMA, depending on risk tolerance.