$RCL - A Bounce off the Rising Trend Line

RCL is exhibiting a bounce off a rising trend line on the daily chart, suggesting a continuation of an uptrend. A rising trend line typically connects higher lows, indicating sustained buying pressure over time. This bounce could signal a resumption of bullish momentum after a pullback to test support.

RCL saw quite a bit of strength into the close, getting the stock above the 5 day MA. Couple this with a move off a volume shelf and RCL presents a nice setup with a reward to risk ratio of better than 2:1.

An entry at Friday's close (assuming RCL does not gap up on Monday) has a price target of previous highs at $277.00. This is a 12% gain to the upside. A stop loss just below the bottom of the rising channel gives a 5% stop loss. The ADR is $9.90 per day, so this stop loss gives RCL enough room to move without being stopped out.