- Shares of Carnival Corp. lose further momentum near $15.00.
- US markets set to open on the defensive on coronavirus fears.
Carnival Corporation (CCL) is expected to extend the move lower following Wednesday’s pullback to the $16.00 zone.
In fact, price action of the cruise-company during the pre-market hours are pointing to further weakness amidst generalized concerns over the unabated advance of the coronavirus in many US states as well as rising uncertainty over the progress of the re-opening of the economy
Other than concerns over the advance of the COVID-19, CCL has been hit after credit rating agency S&P downgraded the company to junk status on the back of poor demand prospects for the rest of the year and 2021.
On the broader picture, all three main US stock benchmark indices are navigating a sea of red during the pre-market activity, always in response to COVID-19 pandemic, the US-China, US-EU-UK trade conflicts and disappointing weekly results from the labour market.
NYSE: CCL risks extra losses below the 55-day SMA
At the moment, CCL is retreating 6.07% at $15.02 and a breach of $15.34 (55-day SMA) would expose $11.00 (monthly low May 14) and finally $7.80 (2020 low Apr.2). On the other hand, the next up barrier is located at $20.63 (100-day SMA) followed by $25.28 (monthly high Jun.8) and then $29.87 (50% Fibo retracement of the 2020 drop).
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