Carnival price analysis: Is the fire over or can we still expect a blast?

The stock has already given more than 100% return to date this year.
The stock currently rests in a very strong zone between 1130-1370 pounds.

Carnival PLC, a company founded in 1972 is the world’s largest leisure company. Their main business is operating cruise ships and they own over 90 ships through which they serve their customers across Europe and outside. The company has seen a increased quarterly revenue since the past 4 quarters which is a huge positive for the stock.

Technical analysis for the stock-

The stock saw a long term range bound movement for almost a year testing investor’s patience. It was in June this year where the stock saw a huge breakout reaching the fresh levels of 1370 pounds. There has been a little slump since the primarily because of profit bookings. The stock now trades at comfortable level of 1255 far away from the next support at 1136 pounds.

The next upside target will be the previous high at 1370.

Looking closely, we can easily see that the stock saw a huge upside and has been cooling down since then. The stock is currently in its distribution zone which is a normal princess in the market. We can see more sideways movement before the stock decides to make any future move.

A soft support can be seen around 1200 pound levels. If the stock does go below this, 1130 levels can be seen and chances for the stock to go below that in the near future are low.

Upside targets at 1330 and 1370 stay as a strong resistance and one should enter long only after these levels have been breached with good volumes and a confirmation.

Conclusion:

The stock is currently in a distribution zone and thus entering right now might not be a good decision. The stock is currently in the middle of a zone and thus taking a position for either side is not advised.

If the stock breaches 1200 pound levels, we then have a 70-100 pound downside target which traders should keep in mind.