Cruising for a Bruising

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One area that’s been doing rather well on the short side, for whatever reason, is cruise lines. Royal Caribbean is a good example. Take a look and the multiple tinted instances of major reversals, as well as the most recent breakdown of a huge wedge pattern.

slopechart RCL

Looking closer, we can see the recent 10% drop in just a few days. Short-term, yes, it seems oversold, but these are serious breakdowns.

slopechart RCL

A related firm is symbol CCL, Carnival Corporation, which also has suffered the breakdown of a major uptrend, dating back to the bottom of the financial crisis.

slopechart CCL

A final, somewhat more obscure example is Norwegian Cruise Line Holdings, which is showing its third major reversal pattern on the chart below.

slopechart NCLH