I’ve been watching and trading CVNA for a few years now. We can see it trading in a bullish channel, however it is facing resistance at the top part of the channel. RSI is well-overbought and we are also seeing bearish divergence on the MFI which is signaling to me a correction in the near-term. Looking for support from the peak of the last rally with a price target at/around $57.
Aside from technical indicators, Carvana does not have enough cashflow to justify its near-$90 price tag. Not only considering revenue, Carvana’s egregious amount of debt is enough to consider its price irrational.
While I am bearish in the near-term on Carvana, I am still bullish in the long run. Despite their enormous debt, they have proven to be successful in being able to manage it and minimize it, while also increasing revenue.
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"also seeing bearish divergence on the MFI" With this, I am referring to the MFI on my daily chart which is not pictured.
Congratulations and well done for sharing your first idea with the community. Hope you will be having great experience. Thanks for your contribution. From mod @Bravetotrade
Hope you will be having great experience.
Thanks for your contribution.
From mod @Bravetotrade