Omicron is the name of the new COVID-19 variant identified by the World Health Organization and the new travel restrictions already in place.
That news directly impacted sales dramatically across market segments today: Airline, cruise and resort stocks fell in price and stayed mostly there.
Daily Price Chart for United Airlines, for example, now looks like this:
The stock fell sharply and rebounded back to a low of 40 in early 2021 before rebounding. That red circle shows not only the gap region but also the sudden burst of volume (red-shaded). You can see how today’s lows surpassed mid-September lows. Today’s drop marks a one-day loss of 9.69% for United Airlines shareholders.
american airlines daily price chart are equal:
The gap down comes at the heaviest volume of the period from the end of March to the present. Note that the price closed below the mid-July low and the subsequent mid-August low. American Airlines closed above both its 50-day and 200-day moving averages for a brief period earlier this month, which is often considered a bullish signal by price chart analysts — but not this time, apparently. Feather.
Cruise line companies had to face the news even today. Daily Price Chart for Carnival Corp. looks like this:
It’s practically the same pattern as airline stocks: a huge difference in volume. The stock closed well below mid-July lows. Carnival managed to form above both its 50-day and 200-day moving averages at the end of September, but that has now all been essentially negated.
here is Royal Caribbean Cruises Daily Price Chart,
After the news there’s a huge difference in volume, much more than usual. In this case, the stock managed to close above its mid-July low, though only barely. Note that Royal Caribbean had a sharper tone in early November, when it opened above the 98 level in early June.
The prospect of a COVID-19 variant means even lower bookings for the resort industry and key equities in that sector showed an impact.
Las Vegas Sands Daily Price Chart Here it is:
This is slightly different from airline and cruise stocks. This large casino resort is down more than 5% but has managed to stay above the previous low of September. Sales volume is not as bad as it was then. Las Vegas Sands is consolidating in this range between 36 and 42 — at least, for now.
WYNN Daily Price Chart looks like this:
The stock declined but remained above its September lows. WYNN has been consolidating above its 50-day moving average for the past few weeks. Whether it regains that speed will now be the question.
Not investment advice. For educational purposes only. Always consult a registered investment advisor before taking any decision.