#CVNA forming massive bullish divergence on RSI and preparing to fly away. I entered this trade today and hoping for TP at 50$ and 69$
Already had massive gains in the last couple of months run
NYSE:CVNA
Bad sentiment, in my opinion the short squeeze ended,
Now trading at 36 Fib first level, I will wait to see price action if continue to the down side would enter short for fib second level
Carefull this stock is hard to trade.
Aug3 earnings will determine which way it breaks, but if/when it breaks the channel trend lines, will continue on to the resistance levels noted (which happen to coincide with the fibonacci levels so you have some convergence if that matters to you).
Went long CVNA around 8 - 9. Had not heard of the stock before, but there was just so much negative news about it I thought it was worth looking at for a fade.
The news has now switched to be more positive, and we're at the 76 fib.
Good spot to fade the rally.
At its current pace, Carvana Co. (NASDAQ: CVNA) is showing no signs of ending its impressive 612.4% run since the start of the year. Recently, CVNA broke its $32 resistance which if confirmed could see the stock continue climbing to its next resistance at $41 which would indicate a 20% upside. There are several factors that can push CVNA stock to its next...
This might be a good time to sell Carvana (CVNA) as the price of Carvana is increasing and the MFI indicator is decreasing, thus creating a Bearish MFI divergence.
Previously, I had put a rather bold prediction calling a shot term top when CVNA first hit the $28.50 price range.
Obviously, you cannot make a full prediction on how a correctional will play out, the most common of which are A-B-C setups. This is setup to be an expanded or running type of flat correctional.
Based on the key trend-line we have yet to test, my...
CVNA on the 2H chart appears to be retesting the resistance zone established by a head and
shoulders pattern over the middle of June. Additionally, on the stochastic RSI it is at a level
from which it reversed on May 25th as well as the pivot highs associated with the H & S.
While volume is above the running average, it is not a spike and so without high...
1. High short interest 56%
2. Took support at fib 50% level.
3. Reduced volume on the pullback.
4. Area of confluence with 50EMA and 50% fib.
5. Formed lower high and higher high in 5 min timeframe.
Will keep an eye tomorrow on it.
CVNA had broken out of its basing formation neckline (a region between $17- $20) on 8 Jun on huge volume. It hit a high of 28.52 on 16 June before pulling back to retest near the neckline @ 20, then rebounded again from there.
IT's trend is in earlys stage yet with immediate suport @ 20. However be mindful that lower priced stocks tend to have huge volatility...
Carvana is setting up for quite the run. Despite seeing a quick increase in price from $15 a share all the way to $26, this Elliot wave count presents a sizeable 3rd wave extension.
Right Now
It looks like we've completed a minute 3rd wave extension, price is looking to move in a serious pullback. The $15.20 range is a big aggressive! If bulls are impatient...
Not an investment recommendation. This chart was made for personal study and personal use only. If you liked the idea, please like it. If not, write why. In my humble opinion, the price will go up.
