As the cruise line has been indefinitely inactive, Carnival recently priced debt with a high coupon, completing an offering of 71.9 million shares at $8 each.
According to financial professional Ed Lin of Barrons, Carnival board member Randall Weisenburger disclosed that he recently bought $10 million of the embattled cruise line’s stock at $8 each over the weekend.
Given that this investment catalyst was publicized for the first time over the weekend while markets were closed, financial professionals may not have been able to react in real time. I expect financial professionals to be focused on Carnival this week given its recent activity.
Into Monday’s trading session, Carnival is setting up nicely from a technical analysis point of view. Shown in green in the chart above is Carnival’s 20-day simple moving average line, a key technical indicator to any successful trader.
Should the price climb above Carnival’s 20-day simple moving average line, I’ll analyze a bullish move on Carnival with the goal of paying myself by the end of the day.
On the other hand, should it dip below Carnival’s 20-day simple moving average line, I’ll be interested in placing a bearish trade on Carnival, collecting all available profits by the end of the day, while stretching my position no lower than $8 per share – and here’s why…
Should Carnival trade at $8 per share again, I believe multiple financial institutions will be lined up to buy shares of Carnival’s stock to echo Randall Weisenburger’s bullish $10 million purchase at $8 per share. I may make the same move myself.
Oftentimes when major investment indicators are released after-the-fact, financial professionals may simply wait on a second chance to make the same move they missed the first time around. This is known as a double-down opportunity, and I’ll be looking for it myself in the days and weeks ahead.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.