Carnival (LON: CCL) share price was the best-performing in the FTSE 250 index as investors cheered the recovery in the cruise industry. The shares jumped to 740p in London, which was ~55% above the lowest level this year. In all, the shares have moved sideways this year.

Here’s why CCL stock is rising

The main reason why Carnival stock price is soaring is the strong performance of Norwegian Cruise Line. In a statement last week, Norwegian said that its revenue jumped to $1.82 billion in the first quarter as demand remained robust.

The company also reported that its total revenue per passenger cruise day jumped by 18% compared to the same period in 2019. Its adjusted EBITDA was better than expected by about $40 million. Norwegian now expects that its EBITDA will jump to $485 million in the second quarter and between $1.8 billion and $1.95 billion in the full year.

Therefore, Carnival share price has jumped as investors anticipate strong financial results when it publishes its results in June. For one, historically, Carnival has always done better than Norwegian because of its scale This also explains why Royal Caribbean stock jumped this week. In a note, analysts at Morgan Stanley said:

“The large value gap between a cruise and land-based vacation continues to be cited as a tailwind, and others see the booking window continuing to lengthen as customers book further in advance.”

Carnival share price has also jumped because of the strong results of most companies in the hotel industry like Marriott and Hilton. These results mean that demand for travel and vacationing is still robust.

Carnival share price forecast

CCL chart by TradingView

Carnival stock price has moved sideways in the past few months. The shares remains between the important support at 598p and the resistance level at 840p. It has moved slightly above the 25-day and 50-day exponential moving averages while the Relative Strength Index has continued rising.

Therefore, the outlook for the stock is bullish, with the next key resistance level to watch being at 840p, the highest point on November 15. This price is ~14.3% above the current level. A move below the support level at 690p will invalidate the bullish view.

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