Will Carnival continue falling, or will it rise again back to recent 4250p highs?

• Carnival share price -13% since 20 Dec when it reported Q3 results
• Carnival beat profit expectations, but gave a weaker than expected 2019 outlook.
• Higher fuel costs and FX headwinds are hitting cruise line operator’s projections.
• Now trading at 3685p (at the time of writing).
• Shares -28.13% from 2018 highs; trading just off 2018 lows, -24.7% year-to-date.
• Can the shares regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Carnival – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 4250p. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 3685p. To do this, you need £2,000.

Let’s assume Carnival recovers back to this week’s highs of 4250p (+15.3%). Your profit would be £1530, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Carnival falls 3% and hits your stop-loss. Your loss would be £300.

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