Royal Caribbean Cruises (RCL) Rallies on Economic Reopening, but Caution Reigns

Steve Miller

On Tuesday, the transportation stocks caught a strong bid to the upside with cruise liners and airlines leading the way.

In this post, we will review Royal Caribbean stock NYSE: RCL, which is up 13% midway through Tuesday’s session… and what the future may hold.

Let’s look at the stock chart

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

Royal Caribbean Cruises (RCL)

royal caribbean cruise lines stock price cycles analysis outlook decline fall year 2020 chart

askSlim Technical Briefing:

The weekly cycle analysis suggests that RCL is in a rising phase in an overall bearish cycle pattern. Weekly momentum is now positive. The next projected intermediate-term low is due in October.

royal caribbean cruise lines stock ticker tcl technical price outlook bearish summer fall year 2020 chart image

On the upside, there is an intermediate-term resistance at 46.64 followed by another zone of resistance from 63.59 – 77.28.

On the downside, there is a rising intermediate-term support zone from 34.12 – 30.61.

For the bulls to regain control of the intermediate-term, we would need to see a weekly close above 90.98 to repair the some of the damage done on the downside.

askSlim Sum of the Evidence: 

Royal Caribbean is in rising phase in an overall bearish cycle pattern. The analysis suggests that the upside in the near-term is limited. There is a likelihood that the stock tests the rising intermediate-term supports beginning at 34 by October.

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