Will Carnival turn, or will it continue to rise beyond 5024p?

• The chart shows the last 7 week’s price action for Carnival.
• The shares have broken above a resistance level at 4432p to trade 4486p (at time of writing).
• The ‘trend is your friend’. Will it continue?
• Shares -12.9% from 2018 highs; +7.6% from 2018 lows; -8.5% year-to-date.
• Carnival operates ocean cruise lines.
• 6 Nov: Launches cruise joint venture in China
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Carnival – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price 4486p (at time of writing). To do this, you need £2,000.

Let’s assume the Carnival trend continues upwards to 5024p (+12%). Your profit would be £1200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Carnival breaks lower, falling 4% and it hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.