Stock Of The Day: Will Carnival Be Range Bound Again?

Core Viewpoint - Carnival Corp's shares are consolidating after a nearly 4% sell-off following the release of earnings, indicating a potential stabilization within a defined trading range [1]. Trading Range Analysis - The trading range for Carnival's stock is identified with resistance at approximately $30.70 and support at around $28.20, suggesting a potential for the stock to remain within this range for the short term [1][6]. - Resistance is characterized as a price level where a significant number of shares are available for sale, which can maintain its position due to seller remorse from previous buyers [2][4]. - Support is defined as a price level with a large number of shares available for purchase, which can also remain intact due to regret from sellers who may wish to buy back their shares if the price drops [5]. Trading Strategies - Traders may adopt strategies of buying near the support level and selling near the resistance level, or they may wait for a breakout above the resistance or below the support before taking a position [6].