Carnival’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 11.7x for 2017.

This situation gives credit to a potential technical rebound. Thus, the stock could find new energy thanks to the USD 43.2 support and the upward oriented trendline.

The trading strategy can benefit from the proximity of the strong support (USD 43.2) currently tested in order to buy Carnival with a good timing. The potential gain is around 8%. Investors might place a stop-loss order at USD 42.6 in order to avoid important losses.