CVNA- consolidation after the earnings gap higher LONG
Updated
CVA on the 30-minute chart shows a high tight flag pattern after the big report of profit
on an annual report. Inflation is affecting auto stocks and recession is increasing the
number of used care purchases while inflation hangs in there. URLs for both a description
of the pattern and the news are embedded in the drawing. The RSI indicator shows a quick
move of the faster RSI line over the slower RSI line. The pattern is typically said to forecast
bullish continuation out of the consolidation. I will get shares at fair value in the consolidation
and follow price for signs of that continuation. Another observation of the consolidation
is the price getting above the third upper VWAP bandline then settling down onto the
support of the first upper line. I look to target 78 from an entry of 68 for a 15-18% upside
with risk constrained by the earnings report and current relative trading volume.
on an annual report. Inflation is affecting auto stocks and recession is increasing the
number of used care purchases while inflation hangs in there. URLs for both a description
of the pattern and the news are embedded in the drawing. The RSI indicator shows a quick
move of the faster RSI line over the slower RSI line. The pattern is typically said to forecast
bullish continuation out of the consolidation. I will get shares at fair value in the consolidation
and follow price for signs of that continuation. Another observation of the consolidation
is the price getting above the third upper VWAP bandline then settling down onto the
support of the first upper line. I look to target 78 from an entry of 68 for a 15-18% upside
with risk constrained by the earnings report and current relative trading volume.
Trade active
CVNA has settled into consolidation. Trade plan is hold a full position. As per the zoomed in view, I will add 25% to the position when price triggers a buy stop at 70
making a stop loss of 68.25 in consideration of local pivots in the price action.
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