economy
Monday's relief rally in cruise lines may allow for a better exit in a week or two, Katie Stockton says
One leisure and entertainment ETF shows signs of long-term upside exhaustion, suggesting a corrective phase may persist for much of this year.
TL;DR
- Travel & leisure stocks are sensitive to geopolitical tensions and rising oil prices.
- Major cruise line stocks are testing key support levels and are at risk of breakdown.
- The Invesco Leisure and Entertainment ETF (PEJ) shows signs of long-term upside exhaustion, indicating a potential corrective phase.
- RCL is testing weekly cloud support near $265 and its weekly MACD has shifted negative.
- CCL is testing cloud support near $24 and appears at risk of completing a bearish double-top formation.
- Daily charts suggest a near-term relief rally for cruise line stocks may last one to two weeks, providing an opportunity for a better exit.
- Near-term strength in the broader travel & leisure group should be seen as an opportunity to reduce exposure due to chart deterioration.