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Carnival PLC (CCL) Shares Surged 3% on Updated Cruise Itinerary, Florida Court Ruling

Simon Mugo trader
Updated 22 Jun 2021

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Carnival Cruise Lines

Shares of Carnival plc (LON: CCL) surged 3% after the cruise ship operator announced that it would resume its Holland America cruises in September.

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The cruises will be operating from the Port of San Diego in California as the company continues to avoid Floridian ports despite a ruling in support of cruise ships.

On Friday, a federal judge ruled in favour of cruise ship operator, saying that the U.S. Centers for Disease Control and Prevention (CDC) cannot force cruise ship operators to ask their customers for vaccination passports.

The ruling was welcomed by Florida’s Governor Ron DeSantis, who claimed that the CDC was overstepping its authority as a Federal government agency.

However, Carnival and the major cruise ship operators said that they were considering the impact of the decision on their operations.

Arnold Donald, Carnival’s CEO, has come out strongly favouring having clients declare their COVID-19 vaccination status, with the company saying it will only welcome vaccinated clients on its ships.

Carnival also announced that it had cancelled the cruises in Asia, Australia and New Zealand, and South America for the rest of 2021. While the company did not give any specific reasons for the cancellation, we can assume it was largely due to the low vaccination rates in some of these countries.

Investors seem happy about the cruise ship operator’s decision, given today’s rally. From a technical perspective, Carnival’s shares are trading below a crucial resistance level, and I’ll be interested to see if they can break above the level.

The company’s shares are currently in a sideways trend, requiring traders to take short positions at or near the top of the range and execute bullish trades when the price is at the bottom of the range.

*This is not investment advice.

Carnival Plc share price.

IG chart of Carnival Plc share price 22-06-2021

Carnival Plc shares surged 3.02% higher to trade at 1776.2p, rising from Monday’s closing price of 1724.2p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading