Bearish option flow was detected in CCL stock on December 31, 2021, after the CDC issued a warning to avoid all ships due to COVID-19.
Bearish Option Flow In CCL Stock
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Cruise stocks fall after CDC says even vaccinated should avoid ships
On December 30, 2021, shares of the cruise ship operators fell after the Centers for Disease Control and Prevention said such travel should be avoided, regardless of vaccination status. In a “COVID-19 Travel Health Notice,” the agency updated its risk level for cruise ships from three to four, the highest level. “This reflects increases in cases onboard cruise ships since the identification of the Omicron variant,” the agency said. “Avoid cruise travel, regardless of vaccination status,” the agency wrote, noting that even fully vaccinated travelers may be at risk for getting and spreading COVID-19 variants. It explained, “The virus that causes COVID-19 spreads easily between people in close quarters onboard ships, and the chance of getting COVID-19 on cruise ships is very high, even if you are fully vaccinated and have received a COVID-19 vaccine booster dose.” Cruise ship operators include Royal Caribbean Cruises (RCL), Carnival (CCL), Norwegian Cruise Line (NCLH), and Disney (DIS).
CDC says 75 cruise ships under monitoring over COVID outbreaks, NBC NY reports
On December 28, 2021, the CDC said it has 75 different cruise ships under some form of investigation, observation, or monitoring due to COVID outbreaks on board, according to NBC New York. There are 36 ships under active investigation, 32 where the CDC investigated already and the ship remains under observation, and 7 where the CDC is monitoring but the ship is under the threshold for investigation. Publicly traded companies in the cruise space include Carnival (CCL, CUK), Norwegian Cruise Line (NCLH), and Royal Caribbean (RCL). Source: https://www.nbcnewyork.com/news/cdc-75-cruise-ships-under-monitoring-or-more-over-covid-outbreaks/3469985/?_osource=SocialFlowTwt_NYBrand
Royal Caribbean, Carnival sailings altered by COVID outbreaks, WaPo reports
On December 27, 2021, at least six sailings on Royal Caribbean (RCL), Holland America, Carnival (CCL) and others last week were altered by COVID-19 outbreaks, reported The Washington Post’s Meryl Kornfield. A wave of new infections on ships fueled by the omicron variant has “knocked the devastated industry and alarmed cruisers,” according to Kornfield’s update on the cruise industry. Source: https://www.washingtonpost.com/travel/2021/12/25/christmas-cruises-covid/
📽 CDC advises people to avoid cruises, regardless of vaccination status
📈 CCL Stock Technical Analysis
The short-term trend is positive, while the long-term trend is still negative. So this is evolving in the right direction, but it may need some more time to really turn around the trend. CCL is one of the lesser performing stocks in the Hotels, Restaurants & Leisure industry. 68% of 136 stocks in the same industry do better. CCL is currently trading in the lower part of its 52-week range, which is not a good signal considering that the S&P500 Index is trading near new highs.
There is support at 18.54 from a trend line in the daily time frame. There is also a support zone ranging from 17.57 to 17.60. This zone is formed by a combination of multiple trend lines in multiple time frames. There is a resistance zone ranging from 20.52 to 21.25. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a resistance zone ranging from 22.36 to 22.69. This zone is formed by a combination of multiple trend lines in multiple time frames.
The technical rating of CCL is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when CCL consolidates and is a good long entry.