Take a Long Cruise on Carnival
Shares of Carnival Corp. (CCL) are breaking out of a long-term consolidation pattern, and the potential move higher could help the cruise line and vacation company recover from the of the Costa Concordia disaster.Carnival Corp. (CCL) -- Weekly Source: StockCharts.com View Chart » View in New Window »
The weekly chart shows either a large symmetrical triangle formation or a declining pennant. Normally, after the sharp drop off the 2011 high, either pattern would be expected to resolve to the downside, but the $27.50 area has been solid support since 2010, and a recent retest of that level is propelling the current breakout move. The breakout above the downtrend line of the triangle is made more significant by the fact that it was being reinforced by a long-term Fibonacci fan line. These are the lines that begin at the 2008 low and extend through the retracement levels measured off that low and the 2011 high. The 62% fan line supported the 2010 low, and marked the June 2011 high and the top of the triangle. In October 2011, the 50% fan line acted as resistance; in 2012, the 38% fan line has contained the stock price. This year, however, CCL was able to make a series of higher lows, which delineated the pattern uptrend line that moved up off the long-term support line....111 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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