Don't Ignore This Chart

NCLH Cruises towards New Highs

Arthur Hill | 

Norwegian Cruise Line (NCLH) broke out of a long consolidation and looks poised to hit new highs soon. The long-term trend is up as the stock surged to new highs with a 50+ percent advance from November 2016 to August 2017. Also note that the PPO(50,200,0) is positive, which means the 50-day EMA is above the 200-day EMA. 

The stock moved into a trading range after the August high and formed a long triangle. This pattern represents a consolidation, or rest, within the bigger uptrend. After testing support in the 52-53 area from October to December, the stock broke out with an advance above 58 in January. 

This breakout effectively ends the consolidation and signals a continuation of the bigger uptrend. The stock recorded a new closing high last week, but remains just shy the intraday high in August. With the uptrend resuming, I would expect the stock to exceed this high sooner rather than later.


Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst, StockCharts.com

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill


Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London.
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