CCL still stuck within tight trading range
Carnival Corporation (CCL) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
CCL ended Monday at 15.28 losing $0.88 (-5.45%), significantly underperforming the S&P 500 (-0.94%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CCL as at Jul 13, 2020):
Monday's trading range has been $1.45 (8.8%), that's slightly above the last trading month's daily average range of $1.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 14.27 and 16.70 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Black Candle showed up on July 9th, CCL actually gained 10.84% on the following trading day.
Prices are trading close to the key technical support level at 14.89 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 14.30 where further sell stops could get activated. As prices are trading close to July's high at 17.83, upside momentum might accelerate should the share mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Its common bearish interpretation has been confirmed for Carnival. Out of 5 times, CCL closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 80.00% with an average market move of -3.99%.