A fundamental analyst at a major sell side firm cut their price target on cruise line operator Carnival Corp (CCL) to $7 and made a bearish case for the stock going to $0 (zero). Pretty drastic. Let’s check the charts to see if they are that bearish too.
In this daily bar chart of CCL, below, we can see that prices have traded lower the past 12 months. Trading volume has been heavy since December telling us that traders have gotten the message about the future of the company and they are voting with their “feet”.
The On-Balance-Volume (OBV) line has been in a decline for the past 12 months telling us that sellers of CCL have been more aggressive than buyers. The slope of the 50-day and 200-day moving average lines are negative.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to a cover shorts buy signal.