Following the formation of a double top pattern at $19.50, CCL has retraced to test the $16.50 level. Traders are advised to consider two potential entry points for initiating trades:
Buying on the breakout above the descending resistance line, as indicated by the dotted lines. Place stop-loss orders below the recent swing low, approximately near $15.
Alternatively, buying near the support level around $14.10, where CCL is expected to complete its ABCD pattern. A surge in trading volume at this level would add weight to the bullish outlook, suggesting a potential resumption of the uptrend from there onwards.
Regardless of the chosen strategy, it's important to implement a stop-loss order to manage risk effectively.