Get started
CARVANA COCARVANA COCARVANA CO

CARVANA CO

No trades
See on Supercharts
Overview Financials News
Ideas
Discussions Technicals Forecast Seasonals Bonds

CVNA trade ideas

$CVNA A Pure Short Squeeze PlayAt 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 resistance, chief among them, are macroeconomic factors including new and used car price fluctuations that could benefit the used car retailer in the long run. With the stock’s short data still high despite its impressive performance YTD, CVNA could be poised to continue its current run as the factors surrounding the company’s business continue to improve. CVNA Fundamentals There are a few notable factors that could be attributed to CVNA’s run this year. The first reason is increased demand for used cars due to consumers seeking affordable alternatives as a result of inflation and increasing car prices and the second reason is the increasing popularity of used EVs. These 2 factors are probably the main cause of why CVNA is currently running. Growing EV Sales According to CVNA’s 2022 end-of-year data, its EV sales have increased by 786% in the past 5 years. This trend has shown signs of growing according to data accumulated this year which includes a study by Cox Automotive indicating that 51% of vehicle shoppers are now considering purchasing an EV. On that note, CVNA provides more than 46 different EV models 40% of which are below $25 thousand which is extremely affordable given the current state of the automotive industry. Affordability Of Used Cars In March, 17% of new cars in the market were under $30 thousand which is a drastic decline from just 5 years prior when 44% of new cars were under the $30 thousand price point and this figure further dropped this month to 8%. This drastic shift in car affordability is likely to cause a boost in demand for used cars which would signal more revenues for CVNA. Q2 Earnings On August 3, CNVA is set to release its Q2 earnings report which will feature the revenue it obtained during the used car season. Analysts currently predict that CVNA will produce $2.6 billion in revenues this quarter which is a significant increase from its Q1 revenues of $1.8 billion. That said, CVNA’s revenue may exceed that figure due to the current disparity that exists between new and used car prices. This would be clearer in June’s CPI report which is set to be released on July 12 as investors would be looking for used car prices to continue declining as that would lead to more used car sales. The Short Squeeze That Keeps Going Despite its impressive run since the start of the year, CVNA stock remains highly shorted with a 61.3% short interest and 51.4% of its float on loan. Given that June’s CPI would be a major catalyst for the company since it will provide a better picture of the used car market, CVNA could see a continuation if used car prices continue to drop as it would mean that it might record more sales in its Q2 earnings which is another catalyst for the stock. Technical Analysis CVNA stock is currently in a bullish trend and is trading in an upwards channel. Looking at the indicators, the stock is currently above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is overbought at 79 and the MACD is bullish. As for the fundamentals, CVNA has a major upcoming catalyst in its Q2 earnings and another catalyst in June’s CPI report on July 12. With the RSI overbought and the stock yet to confirm breaking its resistance, investors could wait for a retest of the $32 level before going long ahead of the company’s Q2 earnings. CVNA Forecast Given the stock’s momentum, upward trend, high short data, as well as macroeconomic factors related to affordability, it is highly likely that CVNA will see a continuation of its impressive run since the beginning of the year. With the company expected to release its Q2 earnings on August 3, investors could wait for the stock to confirm breaking its resistance before going long as the disparity between new and used car prices could see the company reporting more sales in Q2.
NYSE:CVNA
by Penny_Stocks_Today
CVNA - EXPANDED OR RUNNING FLATPreviously, 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 money would be on some form of long-drawn out running flat on the come-down followed by a decent surge once bears fail to take it down below the lower $21 price range.
NYSE:CVNA
by ThePennyMan
Is CVNA setting up a short trade with its pop?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 significance. I see CVNA as reversing now or very soon. I will monitor this on a lower time frame and look for an entry. Once I see some indecision HA candles and their color change from green to red accompanied by some volume and/or volatility possibly confirmed by a bearish divergence downtrend on the RSI I will take a short trade and potentially a put option as well. I think short sellers will be stepping in here with volume after the price spike CVNA just completed. I will be among them.
NYSE:CVNAShort
by AwesomeAvani
CVNA - Trending but volatileCVNA 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 (both up and down). Hence it is important to position size accordingly or chose to exit if it pulls back beyond a certain % and wait for entry again once there are signs that the short term correction is over. Watch out for resistences on the way up around $42 and also around $53+. Also be careful around earning releases. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is (probably the most) important! Take care and Good Luck!
NYSE:CVNA
by Juliac
CVNA - Bulls Are Just BeginningCarvana 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 or a short squeeze is primed, the minute c wave may barely past the a wave. Ahead? We need to see more price action before getting more specific price targets, but in the short term (next 2 months) I am eyeing the $30-32 price range before our next major pullback.
NYSE:CVNA
by ThePennyMan
$CVNA A Pure Short Squeeze PlayAlready up 311% YTD, Carvana Co. (NYSE: CVNA) could be on track to continue its impressive run thanks to its recently announced Q2 financial outlook which is better than expected. Following the release of the improved financial outlook CVNA stock soared more than 64%, however, the stock recently lost 21% due to analysts’ suspicions that the improved Q2 forecast is a one-time thing. Despite this, the recent sell-off could be an overreaction since CVNA is successfully implementing its turnaround plan which might see CVNA stock continue to climb ahead of its much anticipated Q2 earnings with its extremely high short interest. CVNA Fundamentals Improved Q2 Outlook With the new Q2 2023 financial outlook, CVNA is looking to achieve its first step in its plan to tackle its long-term debt since it is expecting to achieve an adjusted EBITDA of more than $50 million. Furthermore, CVNA increased its total gross profit per unit (GPU) forecast by 20% which is a massive advancement in its second step. The new guidance is showing that CVNA is on the right track and is improving its position quickly – especially with the company increasing its loans sold or securitized to nearly $2 billion compared to $1.3 billion sold or securitized as of May 4, 2023. Following CVNA stock’s impressive run on the promising Q2 outlook, the stock saw itself fall more than 21% due to analysts suspecting the improved Q2 forecast is a one-time upside. Analysts believe that even if CVNA achieved positive adjusted EBITDA, it would come at the expense of revenue growth. With that said, CVNA’s first priority is tackling its long-term debt and it is willing to sacrifice growth to do that since the debt poses a more significant threat to CVNA than its growth prospects. Will The Squeeze Continue? In the meantime, CVNA remains highly shorted with a short interest of 64.1% and 76.8% of its float on loan. At the same time, utilization rate remains high at 100% which indicates that CVNA might skyrocket on its Q2 earnings if the company delivers on its projections as that would signal the success of the company’s efforts to turn around the business. Technical Analysis CVNA stock’s trend is bullish with the stock trading in an upwards channel. Looking at the indicators, the stock is trading above the 200 and 50 MAs which are bullish indications, yet it is trading below the 21 MA which is a bearish indication. Meanwhile, the RSI is neutral at 49 and the MACD is bearish. It is also worth noting that the stock has a gap near $15.7 that may be filled in the future. As for the fundamentals, CVNA just witnessed a catalyst in its Q2 financial outlook update and has a major upcoming catalyst in its Q2 earnings. Since this earnings report is critical to see whether CVNA is moving in the right direction to tackle its mounting debt, the stock could soar on a positive earnings report. CVNA Forecast CVNA’s updated Q2 financial outlook provides some positive signs for its future since it is steadily implementing its plan to tackle its long-term debt. In this way, analysts’ fears regarding CVNA not achieving revenue growth appear to be out of place especially since CVNA was clear that it is going to prioritize profitability over revenue growth. Based on this, the recent sell-off could be an opportunity for investors to hop on the CVNA bandwagon in anticipation of a short squeeze on its Q2 earnings.
NYSE:CVNA
by Penny_Stocks_Today