Royal Caribbean (RCL) shares have been trading quite well lately and at last check were up about 3%. At one point, however, the shares were up almost 10%.
The moves come after the cruise-line giant reported fourth-quarter results.
While Royal Caribbean lost $1.22 a share in Q4, it beat analysts' expectations while revenue missed the consensus estimate only slightly.
But the headline results hardly matter: The company said it’s “experiencing a record-breaking Wave season, driven by strong demand.” (Wave season is generally the calendar first quarter, when cruise lines offer many deals, Cruise Hive says.)
Further, the company’s news release read, “The seven biggest booking weeks in the company's history have occurred since the last earnings call in November 2022.”
Management expects adjusted earnings of $3 to $3.60 a share for the full year vs. expectations of $3.23 a share. That’s helping boost the stock, too.
Tuesday’s rally has Royal Caribbean stock hitting its highest level since May. Let’s revisit the chart.
Trading Royal Caribbean Stock
Chart courtesy of TrendSpider.com
Today’s rally is helping extend the stock’s recent surge. If it can finish the week higher, it will mark the stock’s fifth weekly rally in the past six weeks. From the summer low to today’s high, Royal Caribbean stock more than doubled (up 140%).
But could the move be running out of steam?
While the shares initially pushed through the 61.8% retracement, they are now struggling to stay above this level. If Royal Caribbean stock can regain this area — at $73.21 — it puts the post-earnings high in play near $75.80.
If it moves above that, the levels become pretty simple.
The 200-week moving average would be the next objective, followed by a possible rally to the 78.6% retracement near $85.
Above $85 opens the door to the high-$90s, which was a major resistance zone throughout 2021.
On the downside, keep an eye on the $70 level. That roughly marks last week’s high and the post-earnings low.
If Royal Caribbean stock can’t hold active support via the 10-day moving average, the bulls should consider turning their attention lower to the 10-week moving average and the fourth-quarter high near $62 as a potential support zone.
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