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RCL Stock Gains 112% in a Year: Can RCL Show More Gains?

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RCL Stock Gains 112% in a Year: Can RCL Show More Gains?
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Royal Caribbean Cruises Ltd. (RCL) stock illustrates a strong uptrend above the important moving averages and signals a bullish momentum. The daily chart reveals a bullish flag pattern near the recent support zone which indicates that the buyers are accumulating the stock and aiming to retest the $96 level.

The chart pattern of RCL stock demonstrates that the stock has successfully defended its support zone and gathered buying volume to move higher. Furthermore, the buyers have established their dominance near the $95 demand zone, which has been confirmed by multiple tests. The price is trading in the bullish territory and might continue to rise above $105.

The daily chart suggests that the price trend is in favor of the buyers. The buyers have consistently kept the price above the key moving averages. The recent days saw some pullback after the quarterly earnings. 

However, the bulls absorbed the decline near the 50-day EMA as the price stopped making new lows and showed buying in the recent intraday sessions. The breakout of the flag pattern might attract a more aggressive buying volume that could push the price to a higher level.

The analysts have a 1-year price forecast for RCL stock which has a maximum estimate of $139 with a potential of 39.2% to the upside. The analysts expect a minimum drawdown of 1.17% with the lowest price at $98.

RCL Stock Gains 112% in a Year: Can RCL Show More Gains?
   Source: barchart.com

RCL stock option-chain analysis states that the current implied volatility in the market is 33.16% with a decrement of 1.0% in the last trading session. The at-the-money strike price has 3261 open contracts on the PUT side and 2745 open contracts on the CALL side indicating the dominance of buyers at the current level.

RCL Stock Price Shows Formation of Bullish Flag 

RCL Stock Gains 112% in a Year: Can RCL Show More Gains?
Source: Royal Caribbean Cruises Ltd. 1D. NYSE By TradingView

The RCL stock price currently trades at $99.77 and is accumulating more buying volume near the recent swing low. 

Based on the price action, it appears that the RCL stock might gain more after it makes a breakout of the flag pattern. The stock price retested the 50-day EMA and might resume its upward trajectory.  

RCL Stock Price Took Support Near 50-Day EMA

Source: Royal Caribbean Cruises Ltd. 1D. NYSE By TradingView

The daily RCL share price chart shows the accumulation near the 50-day EMA indicating that potential buying may occur in the coming sessions. 

The overall technical opinion rating including RSI and MACD is signaling a 56% “buy” rating with an average short-term outlook on maintaining the current direction. The long-term indicators fully support the continuation of the current trend. 

Conclusion

RCL stock is in a strong uptrend and shows a bullish flag pattern near the support zone of $95. The price might break out of the flag and rise above $105. The buyers have kept the price above the key moving averages and absorbed the pullback after the earnings. 

The analysts have a positive outlook for RCL stock with a maximum estimate of $139 in a year. The implied volatility is low and the at-the-money strike price has more open contracts on the PUT side indicating the dominance of buyers at the current level.

Technical Levels

  • Support levels: $96.12 and $89.31
  • Resistance levels: $105.15 and $112.30

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

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