RCL may set up a fall from a rising wedge SHORT

3월 24일

RCL took a bit of time to recover from COVID but has now done well. The dialy chart reflects

this. Last year price rose in the winder and spring then fell when the summer ended and

reversed upside in November. Ir is now in a rising wedge and price is at the upper trendline.

It is confluent with the second upper VWAP band line suggesting not much room upside as

that line is providing dynamic resistance. The predictive algorithm from Lux Algo designed

to forward forecast from a lookback of the regression line to the left predicts a fall from

the ascending resistance trendline and the underside of that VWAP line. I will short

RCL here and entertain a hedged options trade to insure the short trade. I have shown a

peer stock NCLH from the cruise industry. It has not done as well as RCL. If RCL starts

falling significantly some traders may move their capital to NCLH and help it rise. I will put

NCLH on my watch list along with UAL, AAL, LUV, DAL and LUV as the summer travel

season will be underway in another sixty days and trader interest may rise with accumulation

and price action to follow.