Subject: Pullback & Future Outlook
Based on my analysis, it's not surprising CVNA is seeing a large pullback. Especially after confirming the cup and handle pattern by breaking through historical resistance at $40 price level. It then briefly broke through historical resistance at $55 price level before pulling back.
CVNA is currently filling the large volume gaps left at the $40-$50 price range. Based on my fibonacci retracement levels, I foresee a reversal happening around mid to late January. This reversal will likely occur once price has reached historical support and consolidated at the $35-$40 price range.
Currently waiting on the RSI and MacD indicators to showcase a reversal in the downtrend on the 4hr timeframe. Also further confirmations from the 10/20/50 day moving averages, along with the ZigZag indicator. Targeting a strong value buy entry at the $40 price target, after selling puts extending through 1/12/24. The options premiums are VERY enticing and I foresee a future run up after consolidation.
I will continue to update this post as time goes on. Happy New Year!
Based on my analysis, it's not surprising CVNA is seeing a large pullback. Especially after confirming the cup and handle pattern by breaking through historical resistance at $40 price level. It then briefly broke through historical resistance at $55 price level before pulling back.
CVNA is currently filling the large volume gaps left at the $40-$50 price range. Based on my fibonacci retracement levels, I foresee a reversal happening around mid to late January. This reversal will likely occur once price has reached historical support and consolidated at the $35-$40 price range.
Currently waiting on the RSI and MacD indicators to showcase a reversal in the downtrend on the 4hr timeframe. Also further confirmations from the 10/20/50 day moving averages, along with the ZigZag indicator. Targeting a strong value buy entry at the $40 price target, after selling puts extending through 1/12/24. The options premiums are VERY enticing and I foresee a future run up after consolidation.
I will continue to update this post as time goes on. Happy New Year!