RCL is in a downtrend; technically weak for momentum, but potentially compelling for contrarian buyers if it holds support near 230-240.

Then we have three in consumer discretionary Planet Fitness, Royal Caribbean, and Five Below.

We're also going to highlight one sort of bottom fishing candidate. Royal Caribbean does not score well based on the RRG. But if you're more of a contrarian and looking for stocks that are beaten down, maybe stocks testing key support as I feel RCL may be doing, looking at the lagging quadrant isn't a bad thing.

I don't think that's an avoid uh area necessarily. It just tells you which stocks are in which phases.

All right, the last one I wanted to share with you kind of a different look and this is Royal Caribbean. Um, personally, I don't really um, you know, I'm not really a bottom fisher necessarily, and what that means is buying severe weakness.

I would much rather buy stocks that have been weak and that are starting to show new strength. That's really a classic momentum or trend following strategy. I generally want to avoid things in downtrends.

I'm looking for new uptrend. So, I will often look at stocks like a Royal Caribbean that are in a confirmed downtrend and wait for those signs of accumulation. This is where indicators like the MACD or PO or PMO can be really helpful to help us sort of validate that there's a new accumulation phase or a new turn higher.

But I know there are some of you watching that are a little more contrarian uh minded and you might buy weakness, right? You might buy stocks that are in a position of weakness maybe if they're testing a key support level.

And I think that's what's so vital about the chart of RCL right about here. It's not my personally favorite chart because we're oversold. We're uh below the 200 day moving average.

The relative strength is going down. So, it doesn't really check any of my classic, you know, boxes as a technical uh investor. However, if you're looking to buy um you know, stocks that have been beaten down and looking for uh some some uh stocks potentially ready to bounce off of weakness, I would say this actually could be a compelling uh chart.

And here's why. Number one, looking at the price, sure, we're below the 200 day moving average. Sure, all the moving averages are sloping downwards. All true. But look at how we are testing major support.

We can see the May low was here around 230 to 240. We can see the November and December lows from last year, right around 240 as well. Here we are at 255, not too far away from those major lows.

So, you're not the only one when you see that configuration on the chart, you're not the only one recognizing that we are addressing a level of support that has uh served as support very well uh going back over time.

So, if RCL can hold support, pretty compelling chart right about here. We're also oversold, which happens often, of course, when stocks are in downtrends. But, you know, when stocks

Here's the kicker with a chart like RCL. if it holds support and if that oversold condition does help us identify a stock that's been beaten down at a good opportunity and if the chart starts to rotate higher then the relative performance at the bottom should start to improve as well.

this one earlier, right earlier on in that cycle. Again, what we did today, looking at these uh names, was taken an article that Baron's put out about growth without AI.

I would tell you one final comment with charts like RCL uh you know testing key support with charts like five below or we're looking to see if there's a breakout really good opportunity to use the uh alerts feature on stock charts which is a tool I use often.

So, if I'm analyzing a chart like this and I say, you know what, a break above 260 would clear that resistance and maybe be a good breakout with upside potential. I immediately click on the bell. I say five crossing above 260.