I also have some timing parameters that could help reverse the recent decline. I base on these on the timing of past price swings, and in Carnival, these clusters lie between March 15 and March 18, and from March 25 to March 27. If these timing cycles coordinate with the price work, it will all make for a higher probability setup -- though holding the price parameters also work by themselves. When looking at timing clusters, we watch for a reversal of whatever the market is doing into the dates identified. At this time, we are watching for an upside reversal.
Bottom line: If one of these two price cluster zones holds, I'll consider taking buy triggers in this stock, with maximum risk defined just under the low end of the support zones. If the rally does resume, the upside potential will come in around $41.69 -- a target that I'll revise if the stock hits a new low first. If you trade off one of these areas, and the stock starts to move in your favor, I would suggest trailing up a stop as you go. There will be some healthy hurdles on the way up.
If, instead, these support zones are violated, I will back off the buy side in this stock.
For more information on how to look at trades and triggers, please refer here.At the time of publication, Boroden had no positions in the stocks mentioned.