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Carnival Plc to Continue Upward Momentum?

Carnival Plc operates as a leisure travel company with the majority of their business being orientated around cruise ships. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costs Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names. Alongside this, Carnival Plc also provides port destinations and other services, as well as owning and operating hotels, lodges, glass-domed railcars, and motor coaches. They operate 87 ships with 223,000 lower births and were incorporated in 1972. They have the mission to deliver joyful vacation experiences and breakthrough shareholder returns by exceeding guest expectations and leveraging their industry-leading scale.

Over a five-year period, they have seen some negative performance as their share price has dropped approximately 40% over this period. In the first few months of 2020 their shares took a large tumble which was largely driven by the pandemic and its freeze on vacations with ongoing uncertainty still at the forefront of investors’ minds. Since this period, they have seen a rebound and over the past year their share price has seen an increase of approximately 70%. It will be interesting what will happen next for Carnival Plc as the reopening of their business appears to be nearing with the vaccination programme becoming more successful throughout the globe. It appears their share price is now reaching interesting levels as demonstrated by the chart below.

Their share price appears to be trading within an ascending channel currently as its share see a rebound after their significant drop at the beginning of 2020. This is amidst the more positive outlook and the potential end of the global pandemic which would see a return no travel restrictions. Although, there is still large amounts of uncertainty with regards to global restrictions being lifted so nothing should be taken for granted. Their shares have currently approached a resistance level based of the Fibonacci levels presented in the chart. The price is now moving towards a support level and lower end of the ascending channel which may indicate potential further upward momentum. This industry is one investors are keeping a very close eye on and Carnival Plc may be reaching a prime position to continue its upward momentum. Although, if it breaks these levels then potential for a continuation of its downward trend could be expected. One to keep an eye on over the coming weeks and seeing where the candle closes tomorrow to finish the week.

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