Carnival Corp. (NYSE: CCL) shares traded lower Tuesday after the company announced a tender offer for its 11.5% senior secured notes due 2023 subject to refinancing conditions. The stock may also be falling with the sector as other cruise companies are falling.

Carnival closed down 4% at $25.02. Below is a technical look at the chart.

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Carnival Corp. Daily Chart Analysis

• Shares have been trading in a sideways channel and are now testing support. This is the fourth time the stock is testing this support level.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may hold as an area of resistance while the 200-day moving average may act as an area of support.

Key Carnival Corp. Levels To Watch

• The stock is testing the $25 level as support for the fourth time, a sign a drop could be coming if the stock is unable to see a bounce soon.
• If the $25 level is unable to hold, the stock may drop to the $18 level before it finds support again.
• The Relative Strength Index (RSI) sits at 32 and has been falling throughout the past couple of weeks. This means there are more sellers entering the stock than there are buyers. This is another sign the stock may be due for a drop soon.

What’s Next For Carnival Corp.?

Bulls would like to see the stock bounce at support and start heading higher. Bulls would like to see the stock cross above the 50-day moving average. This would mean sentiment in the stock is turning bullish.

Bearish traders would like to see the stock break below the $25 level. If the stock dropped below the $25 level it may drop to the $18 level. Bears would also like to see the stock fall into the oversold area on the RSI.