The Carnival share price has been in the spotlight for the past few days ahead of its third-quarter earnings. The stock was among the stocks making the biggest moves on Thursday, according to CNBC. It was also among the top gainers in the S&P 500 index on the same day. Despite the uncertainty around the coronavirus infections tied to the highly contagious Delta variant, the company seems optimistic about its performance later in the year. The company has a total market capitalization of $28.3 billion.
Why Is CCL Rallying?
The Carnival Cruise Line (LON: CCL) (NYSE: CCL) is the largest cruise line operator in the world. The company has been on strong waves since the onset of the coronavirus, as the travel sector was among the worst-hit sectors. However, the company has been struggling to recover, albeit gradually.
The company’s cruise ship, Carnival Glory marked the first sail since the onset of the pandemic from the port of New Orleans. The company stated its plans to resume cruises to Mexico, with the Carnival Valor set to sail for Mexico on November 1, 2021. New Orleans is the set departure port for the cruise.
Carnival Cruise Line will be in the spotlight later today as it announces its latest quarter results. Investors and other concerned parties are looking forward to better-than-expected results. On Monday, the company stated that it expected more than half of its fleet to sail by late October. It also stated that the capacity is expected to increase by 65% by the end of the year.
Carnival Share Price Outlook
The daily chart indicates several things about the Carnival share price. First, it has been under intense pressure for the past few weeks. Second, it has managed to move above the 50-day moving average and is trading along with the 200-day moving average. Its RSI has been improving and is currently at 59, which is bullish.
I expect the CCL price to extend its bullish outlook as bulls target the next key resistance at $26.65. On the flip side, this view will be invalidated if the price moves below the key support at $20.52.