CCL closes within prior day's range after lackluster session
Carnival Corporation (CCL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CCL ended the week 13.15% higher at 14.46 after edging lower $0.14 (-0.96%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CCL as at May 22, 2020):
Friday's trading range has been $1.03 (6.9%), that's below the last trading month's daily average range of $1.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CCL. Prices continued to consolidate within a tight trading range between 13.63 and 15.18 where it has been caught now for the whole last trading week.
After having been unable to move above 15.13 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 15.18. The last time this happened on Wednesday, CCL actually gained 3.18% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 13.63 where further sell stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 16.83.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Carnival. Out of 547 times, CCL closed higher 55.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 51.74% with an average market move of 0.14%.