When markets are trending lower, the bears are in charge. There isn’t enough demand to absorb all of the supply, which forces the price lower.

The opposite is true in an uptrend. There isn’t enough supply to satisfy all of the demand and this forces the price higher. The bulls are in charge.

The break of a correctly drawn downtrend line is an illustration of a change in leadership. It suggests the bulls are taking control of the bears and are about to drive the stock higher.

This is the case with Carnival Corporation & plc (NYSE: CCL). The downtrend that began in early June may be over.

(Click on image to enlarge)