CCL tumbles, losing $1.46 (-10.61%) within a single day on high volume
Carnival Corporation (CCL) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CCL finished Wednesday at 12.30 tanking $1.46 (-10.61%) on high volume, strongly underperforming the S&P 500 (-3.53%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on Monday, CCL lost -1.92% on the following trading day. Today's close at 12.30 marks the lowest recorded closing price since May 14th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CCL as at Oct 28, 2020):
Wednesday's trading range has been $0.97 (7.33%), that's far above the last trading month's daily average range of $0.64. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CCL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the lower Bollinger Band for the first time since September 21st, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 14.64 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Carnival. Out of 70 times, CCL closed higher 57.14% of the time on the next trading day after the market condition occurred.