$CAVA bull flag flashingFirst, I must apologize to everyone watching this blog space. After a long recess we are back with some stock idea. Today we are looking at one of our most followed consumers discretionary stocks in this blog space $CAVA.
AMEX:XLY is the S&P 500 select sector discretionary ETF, and this ETF has lost almost 40% of the value. NYSE:CAVA has lost almost 60% of the values form its ATH. It has been oversold with RSI touching 30 and all the 20-Day, 50-Day and 100-Day SMA below the 200-Day SMA. Recently, NYSE:CAVA stock has had some good few days and it’s almost 20% above its all-time lows. Now the stock is above the 20 Day SMA which we can call its first bull flag in a few months.
Accumulate NYSE:CAVA < 100 USD.
CAVA trade ideas
Corrective stance likely to be overNYSE:CAVA corrective 3-wave structure is confirmed after prices have broken above the overhead resistance and are likely to trend higher. The latest bullish bar is strong and is expected to see significant upside, especially if it can break above the immediate resistance at 145.78.
Ichimoku shows two out of three bullish crossover and stochastic has confirmed the oversold crossover. 23-period ROC has resumed the upside momentum and directional movement index is back to the upside.
Maintain long-term uptrend on CAVA
$CAVA: Good Food , Great StockNYSE:CAVA , the Mediterranean themed Restaurant chain had a very successful 2024 IPO debut @ 40$. Then the stock went on to make a 52-week high of 170 $. Since then, the momentum of the stock has faded away and the price fell below 20-Day, 50-Day and 100-Day SMA. The stock bounced back from the 200 Day SMA of 108 $. This pattern is visible with most of the quality Mid Cap and Small Cap names. ‘Buyers returning at key support labels.’ Check out my analysis on other stocks and indexes at 200 Day SMA. I think the 200 Day SMA is held and we consolidate here for a few weeks before starting a upward move for a new ATH.
Major Price Movement Incoming for CAVA!Signalist has detected a precise pattern in NYSE:CAVA BA's trading activity, signaling that a substantial price movement is imminent. This isn’t a random fluctuation—it’s a carefully analyzed precursor to a significant market event.
📅 What to Expect:
⌛ Timeline: Anticipate a major move within the next 1 to 4 upcoming 3-hour candles.
📈 Monitor the Charts: Keep an eye on CAVAs price action over the next few candles.
Prepare Your Strategy: Whether you’re bullish or bearish, have your trading plan ready to capitalize on the move.
CAVA I Cautious Optimistic Outlook Welcome back! Let me know your thoughts in the comments!
** CAVA Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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Thanks for your continued support!Welcome back! Let me know your thoughts in the comments!
CAVA initiating the 5th wave?Hi there! It is my first post, so be kind :)
CAVA seems to be on the verge of the fifth Elliott wave:
1. After a downward trajectory since mid-November, price bounced nicely off a support line, which also corresponds with the 0.618 Fib level of the third wave.
2. Price might also be respecting a potential weekly trendline.
3. WaveTrend positive crossover, indicating a possible reversal of the downward trend since November.
4. RSI and Stochastic emerging from the oversold territory, confirming the possible reversal of the downward trend since November.
5. Price action finds itself in a possible falling wedge, which should be bullish.
Target: at least the 3rd wave level.
Stop loss: just under the support line.
Any comments or suggestions?
Thanks!
New Setup: CAVACAVA: I have a swing trade setup. I'm looking to enter long if the stock can manage to CLOSE above the last candle highs. If triggered, I will then place a stop-loss below (SL) and a price target above it(TP-50%,move SL to breakeven), then using the close below the 10SMA as a trailing stop loss.
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Note: The above setups will remain valid until the stock CLOSES BELOW my set stop-loss level(3).
Cava I Proven to be a steady performer - continued growthWelcome back! Let me know your thoughts in the comments!
** Cava Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future.
Thanks for your continued support!Welcome back! Let me know your thoughts in the comments!
CAVA eyes on $158.79 possible top, 142.26 Golden Genesis supportCAVA has been climbing its Genesis Sequence quite well.
Just crossed a Golden fib that is now key trend support.
Ping on next blue fib or loss of Golden fib could mark top.
$ 142.26 is the Golden fib that bulls need to hold.
$ 156.79 is the minor sister that bears must watch.
$ 132.06 is the first support for bulls to fall back on.
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The bull market in Mediterranean rice bowlsWhile many investors spend weeks or even months searching for the next big AI stock, a company from a different sector has quietly taken the spotlight since the start of the year. With Mediterranean rice bowls as their signature offering, CAVA has surged to a market value of $15 billion and has become one of the top-performing stocks of the year up 200% since its IPO and even more than that since the year began.
Here are some quick facts about CAVA and the industry:
Market Value: CAVA is now worth $15 billion.
Stock Performance: CAVA has been one of the top-performing stocks in 2024 despite tech stocks remaining the preferred sector.
Fast-Casual Health: The fast-casual healthy dining sector is rapidly expanding, crushing companies like McDonald's as consumer preference changes.
CAVA's Niche: Mediterranean cuisine, with its focus on fresh ingredients, has resonated with health-conscious consumers. How much further can this go?
Expansion Plans: CAVA is aggressively expanding its footprint, opening new locations across the U.S.
So what's the lesson here? Well, I am not buying or selling this. I am late and missed it! The point of this story is that it can pay to look in other markets when everyone is focused on a specific sector. The biggest wins can come from unexpected places—like a Mediterranean rice bowl.
Short CAVA potential Gap fillThe current ascending triangle has tested 128 multiple times since August. Briefly holding above on 9/23/24 following a major retracement to a long term support trendline. I believe if the broader market turns bearish in the next week it will retest the 121-122 levels of support. if the current macro-economic events in the middle east, a hard landing and/or the euro/asian markets begin a reversal then we could see the gap fill to 104 in the long term. possibly in the next month or two. CAVA has strong fundamentals and a strong price target of 135 by UBS just a week ago. So i wouldnt be surprised if it breaks through the 128 level one more time before shifting directions. These are my observations and not financial advice.
9/20/24 - a PSA - FAFO Friday's (the long and short of it)I try to stick to longs generally for a few reasons
- bc they can make much more money from a compounding situation
- shorting in a print-money-make-all-turds-float-market is truly miserable
- it takes 2x the effort to find shorts than longs and you have to babysit them
With that being said, sometimes i can't help myself esp when it comes to offsetting my longs AND given i look at a lot of things, i tend to develop a list of stuff that's (just being real) pretty easy to avoid on the long side even if it's a momo-situation.
So. For those paying attention, i have a short list of things that i'm short and while in the short term they've tended to move against me... i am still holding them. i'm that confident the longs are renting exposure and majority of owners (and the loudest voices) are pretty low IQ opinions of how to value stonks. Have written about these. so go check that out.
NASDAQ:NN - worth a sneeze above zero, fundamentally
NYSE:PLTR - everyone who knows nothing about valuation but missed NASDAQ:NVDA loves this but can't tell you how they value it
NASDAQ:APLD - a CRYPTOCAP:BTC meme datacenter
NYSE:SG - great salads, but owning the stonk is like meeting p diddy in the pen. salad toss freak stonk.
NYSE:CAVA - a slightly better margin version of $sg. great food. redonk valuation on stonk (mgmt btw has been dumping... you holding that bag lol)
NASDAQ:WING - take a peek at the EPS vs. the valuation. if u enjoy paying 35x sales for NYSE:PLTR , you'll love paying 20x sales for a place that sells wings ;)
AMEX:KRE - bc the banking biz won't fare well if the long end of the curve keeps rising in a "rates cut" environment. banks are fukt and nothing's been fixed. another FAFO situation.
so there you have it
F.A.F.O. Friday.
Have a wonderful weekend
V
(long book is 25% gdlc, 10% bitw, 15% nxt, 15% celh, 5% myps and some misc. including some meme shorts above)
for now we remain in the casino go up. so position in things that are cheap or trade at discounts that you understand and haven't become popular. keep some cash on the sidelines (i am still packing quite a bit given my NASDAQ:CELH is leveraged w/ LT calls)... and keep an eye out. i can tell you that nobody knows what is going to happen next. so just have a game plan.
Insane overvaluation as we enter a recessionThere is little chance this stock does not correct give its extreme levels and the timing of the looming recession. People will be eating at home or at cheaper alternatives. The selling buy the top executives this early in the company history is not a good sign, not a disaster, but it makes one question the leaderships conviction.
$CAVA - it doesn't fill me up but can it fill the gap?NYSE:CAVA The chart doesn’t look so good. It’s either headed for $97 or checking back to the $88 trendline.
I went there to eat because of the hype, and all I can say is it’s an expensive Chipotle that doesn’t fill me up.
As always, I share my opinions and trades. I’m not suggesting anyone follow my trades. You do you.
Cava Stock Tumbles Amid Insider Selling Frenzy: What’s Next?Cava Group (NYSE: NYSE:CAVA ), the Mediterranean-themed restaurant chain, has been a darling of the stock market in 2024, nearly tripling in value since the beginning of the year. However, the stock took a significant hit early Tuesday after CEO Brent Schulman and several key executives and directors disclosed large sales of their shares. This insider selling, combined with technical indicators pointing to an overbought condition, has left investors wondering whether CAVA's remarkable run is coming to an end or if this is just a temporary setback.
Insider Selling Spurs Concern
According to SEC filings released Monday night, CEO Brent Schulman sold 210,504 shares for a total of $24.87 million. Other key figures, including Cava co-founder and Chief Concept Officer Ted Xenohristos, CFO Patricia Tolivar, and board members James White and David Bosserman, also sold substantial portions of their holdings, collectively cashing out millions of dollars. Insider selling, especially after a stock has experienced a sharp rise, often triggers concerns among investors. It can be perceived as a lack of confidence in the stock's future performance, even if the sales are for personal financial reasons.
NYSE:CAVA Stock: Technical Analysis
From a technical perspective, NYSE:CAVA stock is currently under pressure. After reaching record highs following its Q2 earnings report, which showed an impressive 183% spike in earnings and 35% revenue growth, the stock surged nearly 20% on Friday. However, as of Tuesday morning, the stock was down 7.87% in pre-market trading, indicating a potential gap-down pattern.
One key technical indicator to consider is the Relative Strength Index (RSI), which measures the speed and change of price movements. As of Monday, CAVA's RSI stood at 84, placing it firmly in the overbought territory. Stocks with an RSI above 70 are generally considered overbought and may be due for a pullback. This RSI reading suggests that CAVA’s rapid rise may have been overextended, making it ripe for profit-taking and a potential correction.
Investors should keep a close eye on the $107 support level. If the stock dips to this point and bounces back, it could signal a bullish reversal. However, if it breaks below this level, further declines could be in store, potentially erasing more of the year-to-date gains.
Fundamental Analysis: A Strong Growth Story
Despite the recent insider selling and technical warning signs, Cava’s fundamental story remains compelling. The company has demonstrated strong earnings growth, with its Q2 earnings up 183% year-over-year, easily beating analyst expectations. Revenue growth has also accelerated to 35%, showcasing the company’s ability to expand its market presence and attract more customers.
Cava's IPO in June 2023 at $22 per share marked the beginning of its meteoric rise, fueled by investor enthusiasm for its growth potential in the fast-casual dining sector. The stock's performance has been further supported by positive sentiment around its unique Mediterranean-focused menu, which appeals to health-conscious consumers.
What’s Next for CAVA Stock?
While the insider selling is a red flag, it doesn’t necessarily spell doom for NYSE:CAVA stock. The company's strong fundamentals suggest that it still has significant growth potential. However, investors should be cautious in the short term, particularly given the overbought technical conditions and the possibility of further downside if the stock breaks through key support levels.
For long-term investors, this pullback could present a buying opportunity, especially if the stock stabilizes above its support levels. For traders, it may be wise to wait for clearer signals before jumping back in, such as a reversal pattern or a confirmation of support at the $107 level.
In conclusion, while CAVA stock's recent dip is concerning, especially in light of the insider selling, the company's robust earnings and revenue growth indicate that its long-term story remains intact. Investors should monitor the stock's technical levels closely and consider the broader market context before making any decisions.
CAVA Group Options Ahead of EarningsIf you haven`t sold CAVA before this important retracement:
Now analyzing the options chain and the chart patterns of CAVA Group prior to the earnings report this week,
I would consider purchasing the 100usd strike price Calls with
an expiration date of 2024-8-23,
for a premium of approximately $5.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.