Carnival Corp (CCL) Announces Delays to German Cruises – Cycles Point to Near-Term Downside

by | Aug 3, 2020 | Slim Talk

This morning, Carnival Corp (CCL) announced they had delayed the scheduled resumption of AIDA Cruises from August 5th to August 12th. AIDA Cruises is based in Germany and owned by Carnival. The company will resume operations with a reduced number of passengers and will not stop at any ports. AIDA Cruises is waiting for approval from their ship’s flag state. The flag state is the country in which the ship is registered. In this case, AIDA Cruises is waiting for approval from Italy before resuming operations.

 

Separately, we heard over the weekend that Hurtigruten, a Norwegian cruise company, had over 40 passengers/crew test positive for COVID-19. This news just reinforces the challenges facing cruise liners in the weeks and months ahead. At 2 PM ET, CCL is down about 4.5% on the day. Let’s review our weekly cycle analysis.

 

Carnival Corp (CCL) Weekly Chart – annotations by askSlim.com

At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

 

askSlim.com Technical Briefing: The weekly cycle analysis suggests that CCL is in a declining phase. The next projected intermediate-term low is due in the end of August. Weekly momentum is negative.

On the upside, there are intermediate-term resistances from 24.65 – 29.85. On the downside, there is a Fibonacci support level at 11.54. The only support below that level is the prior swing low at 7.80. For the bulls to regain control of the intermediate-term, we would need to see a rally back over 35.05 to repair some of the damage done on the downside.

 

askSlim.com Sum of the Evidence: CCL is in the late stages of a declining phase with negative momentum. Given these conditions, we see a likelihood that CCL will test below 12 by the end of August.

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