Trade ideas
Carnival Corp this one is for the long runCarnival Corporation & plc, the world’s largest leisure travel company, provides travelers around the globe with extraordinary vacations at an exceptional value. The company’s portfolio of global cruise line brands includes Carnival Cruise Line, Holland America Line, Princess Cruises and Seabourn in North America; P&O Cruises (UK) and Cunard in Southampton, England; AIDA Cruises in Rostock, Germany; Costa Cruises in Genoa, Italy; and P&O Cruises (Australia) in Sydney. Additionally, Carnival Corporation owns a tour company that complements its cruise operations: Holland America Princess Alaska Tours which operates in Alaska and the Yukon.
Together, these brands comprise the world’s largest cruise company with a fleet of 102 ships visiting more than 700 ports around the world. A total of 19 new ships are scheduled to be delivered to Carnival Corporation between 2017 and 2022.
Carnival Corporation employs over 120,000 people worldwide and its 10 cruise line brands attract nearly 11.5 million guests annually, which is about 50 percent of the global cruise market. Combining more than 225,000 daily cruise guests and 100,000 shipboard employees, more than 325,000 people are sailing aboard the Carnival Corporation fleet every single day, totaling about 85 million passenger cruise days a year.
Look for bounce on Carnival Cruise Line in 46.50-48.10 rangeCarnival Cruise Lines has been dipping on news that one of its ships spilled 5900 gallons of gray water into the ocean at Port Canaveral. The incident doesn't actually pose any risk, however, because the EPA is not imposing any penalties. Accordingly, I expect CCL to recover soon, with a bounce in the 46.50-48.10 area.
Entertainment, leisure, and hospitality has been an extremely strong market segment for the last quarter, and CCL beat analyst estimates by over 20% on its last earnings report. The company's 4% dividend and approximately 11 P/E make it a good value even if the sector's outperformance doesn't continue in Q1, but there's no reason yet to expect a slowdown in this market segment.
CCL 8 & 6 RRR shorts on two timeframesTrading Methodology:
1. An asymmetric bullish/bearish pennant is drawn using ascending and descending curved trend lines with a minimum of three price action touche points per line. The direction is determined by the previous trend.
2. The angle tool is applied from the earliest two trend touch points, beginning at the earliest touch point.
3. A trend-based Fibonacci retracement triangle is drawn starting from the earliest trend touch point and ending at the earliest touch point of the opposite trend line .
4. Based on the degree, of the earlier defined angle, the appropriate (and secret) levels are selected for the fibonacci retracement ; two levels for stop-loss and two levels for take-profit. The closest stop-loss level to the current price level is the top priority stop-loss. Though the secondary stop-loss level is often chosen for some markets such as FX and some equities in order to account for seldom unexpected resistance breaks. The greater target level is the top priority, and where majority of the shares are sold, though some may choose to close part of the position at the first target level or set it to be the stop-loss once price exceeds it. Entries should be laddered in around the levels closest of the yellow line.
This trading strategy can be applied to any market and time frame, and positions most often garner the greatest risk-to-reward ratio with the highest success rate. What more can you ask for? I will only be posting my unique trading strategy until EOY. I work solely with price action to identify pennants and apply unique trend-based fibonacci retracement levels for SL and TP levels. Reach out to me if you have any questions.
CCL: Long-term ABCD completed with downside risk at $53CCL had a good run since since 2014 but is flat-lining at the tail end of an extended ABCD formation. High of c.$73 was a stretched 138.2% CD extension with price action range bound since Sep 2017. CCL and competitors have been aggressively adding capacity over the last few years which you would expect severe operational deleveraging in the event of a dry spell. Min price target is a 38.2% retracement at c.$60 whereas base case would be a retest of the congestion zone around the $53 level.