Reasons to buy stock, open bullish spread, or long swing calls: > RSI and stochastic both beginning to turn up with short term line crossing over longer term line. > Yellow line shows first target to 64, which is more than double current stock price. > Price is far from 20sma and due for mean reversion. > Over the next few months, if warranted, price could go 3x or 4x higher into the upper yellow bands, 80-100 and 125-145. > Company's Chief Product Officer made a huge purchase in June. > Used car sales have been relatively strong due to demand from car rental companies. > Risk is low if you buy under $30 (ideally under $28), with unusually high reward.
I respectfully disagree. Carvana is headed for bankruptcy.
raphaelloberant
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@ShortSeller76, Exactly. I dont believe the writer knows WHY the used car market is up... which IS actually NOT good for Carvana. The high prices that they are paying will crush them as soon as NEW car inventories return. CVNA is a ponzi scheme.
OptionsRising
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@raphaelloberant, You are correct to an extent, and perhaps the used car market has already changed. Technically however, price has been sideways for a while and the reward to risk for a swing call trade is great with the stock trading close to 22 right now.
ShortSeller76
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@OptionsRising, you're right only $22 more to go. Better companies and opportunities, BK on the horizon
raphaelloberant
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Oh and the Rental car companines... they stopped buying. They are dumping inventory at the moment. AVIS and Enterprise have not been seen anywhere.... but are trying to push these high mileage POS on me and everyone else.