Will Carnival continue falling, or will it recover March highs of 4248p?

• Carnival shares fell 13% recently
• They since bounced 4% to trade 3758p (at time of writing).
• Shares -15.2% from 2019 highs; +2.7% from 2019 lows; 0.2% year-to-date.
• Can the stock recover to Friday’s 1131p highs?
• 26 Mar: Morgan Stanley says strong Q1 results overshadowed by fuel price worries and broader concerns about politics and economics in Europe.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Carnival – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards March highs of 4248p. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 3758p. To do this, you need £2,000.

Let’s assume Carnival recovers back to 4248p highs (+13%). Your profit would be £1300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Carnival falls 5% and hits your stop-loss. Your loss would be £500.

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