CCL finds buyers again around 15.94
Carnival Corporation (CCL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CCL finished Wednesday at 16.46 gaining $0.53 (3.33%), notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CCL as at Sep 16, 2020):
Wednesday's trading range has been $0.73 (4.53%), that's below the last trading month's daily average range of $0.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CCL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical resistance level at 16.70 (R1). After having been unable to move lower than 15.85 in the previous session, the market found buyers again around the same price level today at 15.94. The last time this happened on Monday, CCL actually lost -10.76% on the following trading day.
Though Carnival is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 15.85 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Carnival. Out of 40 times, CCL closed higher 57.50% 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 four trading days, showing a win rate of 55.00% with an average market move of -0.30%.