The Carnival share price retreated sharply in London and New York two weeks before the first cruise line is expected to set sail in Florida. The shares ended the day at 1,798p in London and at $29.83 in London.
What happened: Cruise line companies like Carnival are preparing to sail again after being left in the cold for months. The first sails from Florida, the biggest hub in the United States are expected in the next two weeks.
However, there is still confusion about how this rollout will happen as court proceedings between the companies and the CDC goes on. The CDC has put in place a set of strict regulations that these companies must follow when they reopen, including mandatory vaccinations of the crew and staff. While the companies agree that customers needs to be vaccinated, they are opposed to mandatory vaccination checks.
The Carnival stock price also declined after some customers inside a Royal Caribbean cruise ship got the virus. The customers were fully vaccinated, raising concerns about future cases. The judge will rule on the ongoing case in the next few days. Unlike Norwegian and Royal Caribbean, Carnival plans to wait for a while before it starts sailing from the Floridian hub. So, what next for the Carnival share price?
The daily chart shows that the Carnival stock price has been in some consolidation in the past few days. The stock is still 125% above the lowest level in November last year. The shares seem to be forming a double-top pattern, which is usually a bearish signal. Its neckline is at around 1,500p. Also, we see that the stock made a false breakout a few days ago when it managed to move above the important resistance level at 1,850.
Therefore, looking ahead, the stock could be a bit volatile as traders wait for the Floridian judge ruling on the cruise industry. This could see it pull back further to about 1,700p. However, there is also a possibility that the shares will pull back as investors rush to buy the dips.
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