Carnival PLC (CUK Stock): Will Price Melt To $12.80 In August?

• Carnival to pay down $1.2 Billion of debt due in 2026.
• The CUK stock price is trading at $15.23 with a return of -3.24% during the intraday session.
• The year-to-date return of CUK stock is 106.93%, and the three-month return is 66.90%. 

In early July, CUK stock price achieved an annual high that was not sustained and halted at the $17.67 resistance level. From there, Carnival stock price witnessed a long march of bearish momentum in the market. Hence, the previous month’s return reflects the opposing growth of -8.58%.

CUK stock has been trading in a downtrend since 5 July 2023. As the downward momentum rises, the stock price is declining daily.

Carnival PLC Announced The Q2-2023 Consensus On 26 June 2023

Carnival stock price surged roughly 41% in a week after the release of second-quarter consensus, from the low of the $12.47 support level and it went on to  form an annual high at $17.67 resistance level. 

Moreover, the Q2-2023 financial earning report reflects positive results with a surprise of $0.02, while the reported EPS (earning per share) was -$0.31, and the estimated forecast was -$0.33.

Furthermore, the reported second-quarter revenue was $4.911 Billion, which surpassed the $4.788 Billion estimated revenue forecast by $122.64 Million.

Carnival to Pay Down $1.2 Billion of Debt Due in 2026

Carnival bonds experienced a significant increase in value following the announcement from the British-American cruise operator that it plans to retire $1.2 billion in high-cost debt, leading to anticipated annual savings of $120 million. This positive development has attracted investors to show interest in buying and investing in CUK stock.

CUK stock price is recently hovering near the previous support level of $15.51. If the current downward momentum remains constant, the bears can pull the price below the  $14.73 resistance level of 16 June 2023.

On the contrary, if the bulls gain momentum, the price might retest the annual high of $17.67 resistance level, which will cause a surge of around 15%.

Technical Analysis of Carnival PLC 

The chaikin money flow (CMF) score is -0.02 during the intraday session, showing slight weakness in the market. 

The relative strength index (RSI) trades at 44.22, which denotes the rise of bearish momentum in the market since 12 July 2023. 

Carnival stock price is facing rejection from the 20-day EMA, indicating increased sellers’ participation in the market. However, the current market capitalization of CUK stock price is $21 Billion, with an average volume of 1.45 Million shares.

Conclusion 

Following the positive response to the Q2-2023 financial report, the stock price of CUK experienced a surge. However, the current market sentiment has shifted towards bearish momentum, leading investors to consider potential selling opportunities. This sentiment is reinforced by the indications provided by technical indicators, which are also signaling a bearish condition for CUK stock.

Technical Levels 

• Major resistance: $17.67 and $17.17
• Major support: $7.65 and $7.83

Disclaimer

The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.