Cruise stocks are getting sunk.
All thanks to the spread of the coronavirus all around the world.
In the U.S. for example, according to CNBC, “Cases have rebounded in the U.S. this month with the delta variant spreading among the unvaccinated. The U.S. is averaging nearly 30,000 new cases a day in the last 7-days ending Friday, up from a 7-day average of around 11,000 cases a day a month ago, according to CDC data.”
With it are fears we could see another global lockdown, which could immediately sink the cruise industry comeback.
At the moment:
Carnival (CCL) is down another 5% on coronavirus fears. Around midday, about 61 million shares traded hands, as compared to daily average volume of 27.27 million. Plus, after breaking double bottom support, CCL could now challenge support around $18.
Royal Caribbean (RCL) is down $3 a share on volume of 7.7 million shares, as compared to daily average volume of 3.79 million. RCL is currently challenging support around $65.20 and could test $64.26 next if RCL can’t turn the ship around.
Norwegian Cruise Line (NCLH) is down $1.25 on volume of 23.7 million shares, as compared to daily average volume of 16.8 million. NCLH is below support and could now test $19.35.
Until we have more clarity on the virus, these cruise stocks are great short opportunities.
