The Carnival share price has been struggling to recover from the pandemic. However, it is nearly 33% below its highest level this year in June. The stock closed 2.00% higher in Wednesday’s trading session. However, it fell more than 2.70% in the premarket trade.
Delta Variant Concerns
The resurgence of the Covid-19 virus alongside the Delta variant has been heavily weighing on the transport sector. With the reimposition of strict lockdown restrictions in most countries across the globe, cruise line operators have been down.
Being the world’s largest cruise line operator, Carnival was among the heaviest hit by the pandemic. The company’s shares were on a losing streak for two consecutive months before consolidating later in August.
According to the Belize Tourism Board, Carnival’s cruise ship, Carnival Vista, was reported to have 27 people test positive for Covid-19. All who tested positive had been vaccinated, indicating that despite the successful vaccination rollouts, the virus has continued to spread.
The cruising industry has been forced to tighten health protocols in a bid to curb the virus spread. The Carnival Cruise Line recently announced new masking requirements for all passengers. The company has also imposed vaccination requirements for its passengers.
Britain’s markets regulator has been urged to sanction the Carnival Cruise Line and Just Eat Takeaway.com. Both companies were reported to have breached their legal requirements by failing to inform investors of the risk climate change poses to their businesses.
With the easing of lockdown restrictions, investors are looking forward to better performance.
Carnival Price Action
The Carnival share price has been trading nearly 23% higher from its lowest level this year. It is trading below the 100 and 200-day moving averages, hinting at a negative outcome. It is also trading below the 100-day exponential moving average.
Therefore, Carnival’s share price is likely to edge lower in the near term to find support at $20.80. However, a move above the 200 DMA at $24.00 will invalidate this view. As such, the bulls will be targeting the resistance at the 100 DMA at $26.20.
Carnival Share Price Chart
