The expectation of flat earnings for CCL was not received well by investors after the company’s AGM in early May. The share price took a hit but often when a stock does that you see it then bounce and retest that low. A set-up that I like looking for in these circumstances is where the share price goes to a new low whilst showing good divergence on the RSI. That normally leads to another bounce but it is often stronger and could last a few weeks. We have now seen that on CCL. There are also a couple of other points worth noting. The first one is that during the last two years, this level as provided some very strong resistance, so I would expect that we are now at good support. Secondly, we appear to have fallen from the March high in a neat 5 wave structure. That tells me to expect a 3 wave counter trend move. If we recover only 50% of the fall, it takes us right up to where the stock gapped down in May. Therefore, I would expect to now see CCL rally for a few weeks up to at least $13.80 before failing.