The Carnival share price took a hit this Thursday after the legal NGO ClientEarth asked UK market regulators to sanction the company over its alleged failure to disclose the risk to its business from climate change.
UK laws mandate companies to disclose any material risks to their businesses that could impact their future valuation, to allow would-be investors to make more informed investment decisions.
Suppose the UK regulators pick up on this allegation. In that case, it could be a big blow to the recovery efforts that Carnival is putting in place after the shutdown of the cruise industry in 2020 impacted its operations. A few days ago, 27 persons aboard its Vista cruise ship tested positive for COVID-19 in Belize, despite being fully vaccinated.
The Carnival share price is down 3.67% as of writing and could face additional pressure in the coming days on surging cases of the delta variant.
The Carnival share price is testing support at 21.41 after violating the channel’s lower border. A breakdown of this price level targets 20.52, with 19.61 and 18.00 serving as potential targets to the south.
On the flip side, a bounce on the 21.41 support enables the bulls to return the price to the 22.93 resistance on the way to the channel’s return line. 24.00 is also another resistance that price must overcome on the way to the opposing channel border, where 25.27 stands as an additional barrier. This barrier must give way for 26.78 to come into the picture.
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