October 16

Pick Of The Week – Analysis On Royal Caribbean Cruises (Week 42, 2022)

Have you been on a cruise with Royal Caribbean Cruises?

Did you enjoy it? 

I’m tempted to go for a cruise with Royal Caribbean Cruises after my friends have been raving about it. 

Before planning for it, shall we examine Royal Caribbean Cruises?

Performance Of US Stock Market vs Royal Caribbean Cruises (RCL)

Before we analyze the performance of Royal Caribbean Cruises’ share price, it’ll be beneficial to analyze the performance of the S&P 500 futures. 

The S&P 500 futures is also known as the overall US stock market as it contains the top 500 listed companies in the US. 

At a glance, you can tell that the S&P 500 futures is in a downtrend

After a brief 2 month rally from mid-Jun 2022 to mid-Aug 2022, the S&P 500 futures fell hard. 

How did it perform last week? 

The S&P 500 futures had a whirlwind week, especially on Thu night as it sank by about 2% but rose to close 2% in the green! 

Apart from that, the week was bearish. 

Source: royalcaribbean.com/sgp/en/cruise-ships/odyssey-of-the-seas/things-to-do

Now, you’re ready to analyze the chart of Royal Caribbean Cruises.

Its share price was in a downtrend till mid-Jul 2022 when the trend turned up. From thereon, the share price of Royal Caribbean Cruises kept rising higher and higher

Like most of the past weeks, the share price of Royal Caribbean Cruises was bullish last week.

Ok, so you’re checking out if the shares of Royal Caribbean Cruises is suitable for a quick swing trade. 

Is the share price of Royal Caribbean Cruises’ explosive to make it worth for a quick swing trade? 

Let’s find out! 

How Explosive Is Royal Caribbean Cruises (RCL)?

Even as the share price of Royal Caribbean Cruises was coming down, it had experienced 2 explosive up moves. 

There are a total of 10 explosive up moves with the smallest measuring 7.9% while the largest measuring 27%! This is a massive feat considering that Royal Caribbean Cruises has a market capitalization of more than $11b. 

The movement of Royal Caribbean Cruises’ shares clearly meets the criteria of being explosive in nature.

What’s next? 

It’s time to uncover its key price levels to discover if the time is ripe for a quick swing trade.  

Key Price Levels

From the chart of RCL above, you can tell where its support and resistance zones are at. 

There’s an immediate resistance zone at about $51, and 2 support zones are about $44 and $38.

Where is the share price of RCL?

It’s just above its $44 support zone. This is great because support and resistance zones are key price levels that are potential turning points.

In essence, this $44 zone is a potential turning point where the price of RCL could fall lower to, bounce off, and rise.

I like what I’m seeing. 

The Strategy You Can Use To Trade Royal Caribbean Cruises (RCL)

After comparing the performance of RCL with the broader US stock market, determining if RCL has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy. 

To stay in business, you must know your entry, profit taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.

Using The Art of Explosive Profits (AEP) framework, I’d like to see RCL drop a little more before considering an entry.

As the name implies, you’ll be looking to consistently catch an explosive move in a short period of time.

Instead of relying on news and hearsay, the AEP course will teach you how to look for strong stocks like RCL.

You’ll also learn how to read charts and identify stocks that are about to make a big move.

Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!

Have a look at the AEP framework and incorporate this explosive trading strategy to your arsenal to capitalize on more swing trading opportunities.

Why Is Royal Caribbean Cruises (RCL) The Stock Pick Of The Week?

As the overall US stock market continues heading south, the share price of RCL continues to head north. RCL is clearly beating the market, showing strength.

Going one step deeper, you arrived at the conclusion that RCL enjoys explosive up moves ranging from 7.9% to 27%. This is significant as it’s a critical factor for a quick swing trade.

In addition, RCL is at a sweet price point now. It’s just above its critical price level of $44, signaling that a quick short swing trading opportunity is round the corner. 

While I await the opportunity, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.

Lastly, all photos and images are from unsplash.com, pexels.com, pixabay.com, and tradingview.com.

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