Carnival heads towards 200-day moving average

Since the beginning of 2013, shares in cruise-line operator Carnival have made three attempts to break through the £26 level, but each time they have failed to push above it.

Carnival has seen an improvement in its operating performance in recent months, managing to beat expectations in its December figures. It appears that the difficult trends of 2013 have been replaced by a steady improvement in booking volumes, and the expectation is that revenue yields will turn positive during the second half of this year.

As things stand, the shares have been dropping back from the £26 level. We now look towards the top of the gap created in May 2013, just above the £23 level, for an immediate support area, although the 200-day moving average may prove to be something of a barrier in the short term.

If the May gap fails to hold then we look towards the top of the second major gap, created in late September 2013. Those in search of a positive element to the price action might want to look at the slowly rising 100-day moving average and the fact that the 14-day RSI is pressing towards ‘oversold’ territory. 

Carnival chart

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