Back to top

Is Royal Caribbean Stock the King of the Ocean?

Read MoreHide Full Article

Is it finally safe to jump back into the water? Anecdotally, the cruises that I have been on have been good and packed to the gills, with the really good deals nowhere to be found like they were a few short quarters ago. As for the cruise ship stocks, there have been winners and losers. Here, Royal Caribbean (RCL - Free Report) is a clear winner. This stock doubled dipped and bounced near the COVID lows into the summer of 2022. Shares were scraping $35 back then.

Following earnings of $5.20 on revenues of $4.89 billion and a raise on FY24 outlook, shares topped $210.10 today. Heading into the COVID lockdown, the stock was in the $130s. It’s snapped back in a big way, especially when compared to rivals like Norwegian which are still trading less than half of those pre-COVID levels. Balance sheets matter in the recovery.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Royal Caribbean’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Royal Caribbean Cruises Ltd. (RCL) - free report >>

Published in