74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    The Carnival share price cruises to the top of the S&P 500

    There was a near three weeks and 10% correction for the S&P 500 ahead of the US Presidential election date on November 3. In addition to this, the correction in the S&P had essentially run its course by the day before the count, something which meant that the S&P 500 had a full week to anticipate and celebrate a likely Joe Biden victory.

    However, the rally was supercharged on November 9 by the announcement Pfizer (PFE) made regarding having developed a COVID-19 vaccine.

    Almost instantly, the bulk of the stocks exposed to the pandemic rallied as strongly as they have all year, with cruise line operator Carnival shares topping the S&P 500 leaderboard with a 39% gain. The question now is whether the CCL share price can build on the vaccine news good fortune?

    Learn more about shares trading with us

     

    Carnival share price and COVID-19

    Clearly the post March environment for the Carnival share price has been blighted by the COVID-19 pandemic, with the outbreak of COVID-19 on Carnival’s Diamond Prince cruise ship in March becoming a latter day Titanic in terms of negative impact on the company and its sector. At the time, like many other companies in the hospitality and leisure sectors, the CCL share price tumbled.

    In this case pre-pandemic peaks were above $51 and the April floor below $8. This was off the back of the US Center for Disease Control and Prevention issuing a no sail order in March, with Carnival itself then suspending the dividend after predicting a loss for the year to November 30.

     

    The CCL share price and lifting the no-sail order

    Interestingly, even before the announcement of the COVID-19 vaccine on November 8, the CDC lifted the no-sail order. The move to conditional sail status saw the CCL rebound from $12, with the Pfizer announcement then leading to a near term peak for the Carnival share price at $19.86.

    CCL shares have been subject to two massive bullish drivers in the space of days, and while they have recovered well in percentage terms, there are a number of factors to be addressed before investors can regard the fundamental coast as being clear.

     

    Carnival Share Price: $1.5bn stock sale

    This point was underlined the day following the explosive 39% rise for CCL stock on November 8. Carnival itself took the wind out of the sails of buyers by announcing plans to sell $1.5bn in stock just the following day.

    The immediacy of this announcement highlights the cash crunch companies like Carnival have suffered in recent months, and the way that the road to recovery will be a long one.

    The $1.5bn stock funding move contrasts with a Q3 loss reported last month of $2.86bn, albeit less bad than feared. Revenues fell from over $6bn to just $31m for the same quarter last year.

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

     

    How to trade shares with ATFX

    Looking to trade Carnival shares and other major company shares? Open a live or demo account with ATFX to get up to speed. Start trading now to benefit from competitive spreads, high-quality trade execution, and no commission.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for Carnival shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    CCL Share Price Daily Chart

    With CCL shares falling by some 75% from February to April this year, there was always going to need to be a significant driver to end the 2020 breakdown for the stock. What may be key in the near term is the relationship of the shares with the 200 day moving average at $18.
    While there has so far been a brief spike through this feature, a weekly close above $18 is probably needed to change the downtrend of 2020.

     

    carnival-chartpngDaily chart showing Carnival share price daily movements for 2020

     

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    It offers a host of functionality that will boost your trading experience. From advanced indicators to automatic trading as well as alerts and trade signals.

    Last Updated: 11/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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