Carvana has been on a wild run since it's lows of $30 in March.
On the current chart, we can clearly see the uptrending channel that price action has been following until the price abruptly rallied and went through a distribution phase.
This is the perfect time to "buy the dip" as they say. With our trendlines, we are filtering out the fast-paced rally.
Indicators tell us the price is oversold and the price action is showing us that buyers have been jumping in at this level.
As long as buyers continue to feel comfortable at this level and no negative news or quick drops of popular indexes take place, the volume should return and there should be the opportunity to make 15-25% from this trade. Maximum downside is 5.83%.
I’m looking at selling $300 OOM weekly calls.
Seems like shorts probably blown up already.
Crazy stock.