Shares in Royal Caribbean Group (RCL) hit another record high Wednesday after soaring yesterday following better-than-expected earnings and a strong outlook from the cruise line operator. 

Royal Caribbean's (RCL) financial results have been buoyed by price hikes and onboard purchases. On the bookings front, the company said momentum is continuing into 2025, with the metric accelerating since the previous quarter, leading to the best five booking weeks in the company's history. The cruise operator also announced that it would begin taking bookings this year on new river cruises, which are planned to start on 10 new ships in 2027.

Shares rose 1.5% on Wednesday to a new closing high of around $269. The stock has gained 17% already this year and has more than doubled over the past 12 months.

Below, we analyze the technicals on Royal Caribbean’s chart and point out important price levels that investors might be watching.

Falling Wedge Breakout

Royal Caribbean shares broke out of a falling wedge earlier this month, retested the pattern’s upper trendline, and then rallied to a new record high, signaling a continuation of the stock’s uptrend.

Importantly, Tuesday’s post-earnings pop occurred on the highest daily volume since October 2023, suggesting buying participation from larger market participants, such as institutional investors and pension funds. Meanwhile, the relative strength index (RSI) moved above the 70 threshold on Tuesday to register an overbought reading, but also confirm bullish price momentum.

Let’s apply technical analysis to predict how the stock’s current move higher may play out and also identify important support levels to watch during potential dips.

Bars Pattern Trend Analysis

Investors can forecast where the stock’s uptrend may be headed next by using the bars pattern tool, a technique that analyzes prior trends to predict future directional movements, working on the assumption that price history often rhymes.

When applying the tool to the Royal Caribbean chart, we take the price bars that comprise the uptrend from August to December last year and overlay them from this week’s low. This projects a target of around $425 and indicates that a bullish continuation move may last until early June.

We selected the prior trend as it commenced after a piercing pattern, closely replicating how the current move higher has started.

Important Support Levels to Watch

During pullbacks, investors should initially watch the $222 level, a location where the shares may find support near the falling wedge pattern’s upper trendline, which also aligns with multiple price points on the chart extending back to early November.

Finally, selling below this level could see Royal Caribbean shares revisit lower support around $198. Investors waiting for a significant retracement may look for buying opportunities in this region beneath a narrow consolidation range that formed on the chart in the second half of October.

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As of the date this article was written, the author does not own any of the above securities.