5:55 PM · 16 November 2022

Carnival tumbles as company plans to raise more debt

Carnival (CCL.US) shares fell over 13.0% on Wednesday after the cruise line operator plans to increase the debt again. Company announced a $1 billion convertible debt offering due in 2027 as part of its refinancing plan.

Carnival's shares plunged more than 15.0% since mid-August, while stocks of its main competitors Royal Caribbean Group (RCL.US) and Norwegian Cruise Line Holdings Ltd. (NCLH.US) surged 34.4% and 19.0% respectively.

Carnival (CCL.US) stock rose sharply since early October, however upward move was halted around major support at $11.25, which is marked with upper limit of the 1:1 structure and 23.6% Fibonacci retracement of the downward wave launched in September 2021. As long as price sits below, the main sentiment remains bearish. Nearest support to watch can be found at $8.35 and $6.20, where October lows are located. On the other hand, if buyers manage to regain control and break above the aforementioned resistance, the way towards $14.40 will be open. Source: xStation5

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