What Lies Ahead for Carnival Stock After a Strong Bullish Year?

• The stock has given an outstanding 88% return to its investors in 2023, but August saw a big negative buildup.
• The stock currently trades around its support at £11.24. Things look positive as long as the stock trades above £10.52.
• The current setup looks slightly weak as sellers are overpowering buyers in big numbers.

Carnival Corporation Stock & Plc is a British-American cruise operator. It has a combined fleet of over ninety vessels across nine cruise line brands. This company also has one joint venture with China State Shipbuilding Corporation.

Financially, the company looks pretty strong. 2020 and 2021 saw a big dip in revenue due to covid. It recovered losses rapidly in 2022 with over a 600% increase in net revenue. The financials are a huge positive for the company’s stock and its investors.

Technical Analysis for the Stock

The stock has seen a highly bullish year giving more than 80% returns this year. It saw a rejection from its resistance at £13.730. It has seen constant selling since then! This can be looked at as a profit booking phase as the stock gave huge returns. If that is true, more buying may occur in the upcoming months.

£10.520 is the next strong support for the stock. As long as the stock trades above this price, the view remains bullish. If the stock does breach these levels, we can expect a good downside move till the £9.216 level. 

The current setup suggests a possible sideways movement for some time before a big move on either side occurs. The stock has seen a big movement in the past few months. Some volume-less low volatility movement is expected after a big movement.

On an hourly chart, the stock has had enough downside after hitting its high. Therefore, further drop may not occur until and unless there is some negative sentiment or negative news. The stock has already slumped down 11% in the past 1 month. It is currently seeing some recovery. 

£10.52 is strong support and the chances for the stock to breach this level are not too high. The stock has breached its resistance at £11.25 and trades above it comfortably. 

The chances of a drop in the stock value are low, but a good buying opportunity might not be available right now. One can look to buy above £12.18 with a target of £13.73. However, this might take some time. An instant upward move is less likely to occur. 

Conclusion 

The stock has seen good retesting since it hit a high. The chances of the stock to slump further below are less. The stock is currently in a sideways zone. Thus, a good buying opportunity is not available as of now. The stock has already given good returns this year. Users should stay away for a few months before making any move.

Important technical levels:

• Major support levels: 11.25£ followed by 10.52£.

• Major resistance levels: 12.18£ followed by 12.83£.