Bearish MFI Divergence to sell Carvana (CVNA)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.
CVNA trade ideas
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.
CVNACreated this ellipse and multiple major level price notes for the price target to retracement to supply zone.
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.
#CVNA Getting ready for next leg.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 - 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!
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.
CVNA - Bullish positioning📈 Checkpoints aligned!
Bullish signals flashing ✅
High short float (Squeeze) ✅
Breakout from consolidation pattern ✅
Rising institutional buying ✅
Anticipating an upward surge! 🚀
CVNANot 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.
CARVANA ready to ripHave been DCAing into Carvana the last 3 months. This thing is about to rip. MA 200 break and test. Will keep adding into any pull backs.
CVNA - Still has more upside
Starting to form a flag on daily. Has been volatile in the selling zone, but all the dips to 10.50 have been bought so far.
once it breaks above 13, likely to see 19 real fast for 200DMA cross.
If 10.5 goes, next stop would at 8 and 6.
$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.
$CVNA Short squeezed NYSE:CVNA A pull back to the horizontal line will be support and a buying opportunity a pull back to the 20 day moving average will also be a buying opportunity, the 20 day crossing above the 200 day moving average is bullish.
CVNA - Range Break + High short interest CVNA has broken through resistance of $13 after a short range consolidation which came after earnings. The short interest on the stock currently standing at 50%. This could spark some short squeezing should it hold above and break $14. $16 and $20 are next targets. Stop loss below $10.
More High or ... ?hi everyone
i think this is enough for a day and you may close some of your position and see what will happen next
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CVNA - Retracement UnderwayCVNA in the past couple of trading sessions had a 20 % move and then reversed downward.
As shown on the 1 hour chart, price is below the demand/ resistance zone and sitting on the
POC line of the multisession volume profile where volatility is often at its highest. The
anchored VWAP indicator shows the bands are nearly flat. Price is in the fair value zone and
falling towards VWAP. RSI is near 60 and dropping.
I see this as a decent short setup.
The first target is before the VWAP at 11.20 while the second target is at 10, the confluence
of the bottom of the high volume area and the first VWAP band below the mean. the stop
loss is near to the first VWAP band above the mean at 12.55.
Fundamentally, CVNA has a decent earnings report but is subject
to an impending recession where consumers may be not inclined to make big purchases such
as cars.
CVNA 15 minCVNA 15 minute chart easy triple bottom buy.
Clear support levels below at Volume nodes
Easy Day Trading
Is CVNA going to $0 ?Inverted cup and handle. Everything I should have written here you can see on the chart
Trade at your own risk. This is not financial advice.
$CVNA-Regular Divergence Indicates Potential Bearish OpportunityCarvana ( NYSE:CVNA ), the innovative online used car retailer, has recently shown signs of a regular bearish divergence on its chart, indicating a potential reversal in its current trend. With an identified entry, stop loss, and take profit points, we could be looking at a shorting opportunity here.
Technical Indicators:
The regular bearish divergence, circled in yellow on the chart, suggests a weakening in the current uptrend. This pattern is often a sign of a potential upcoming bearish phase, making it an opportunity for short sellers.
Trade Setup:
Here's a potential trading setup based on the current technical indicators:
- Entry Price: 12.56
- Stop Loss: 13.70
- Take Profit 1: 10.77
- Take Profit 2: 9.13
This setup offers a good risk to reward ratio. The stop loss is set above the recent swing high, limiting potential losses if the price unexpectedly rises. The two take profit points allow for managing the trade more efficiently, taking some profit at the first target and letting the rest run if the price continues to move favorably.
Options Play:
For those interested in options, a Put option expiring on May 19th with a strike price of $10 could be a potential play. This would gain value if NYSE:CVNA stock price decreases, aligning with the bearish divergence.
NYSE:CVNA current technical setup suggests a potential bearish opportunity. However, as always, it's essential to manage risk effectively and ensure the trade aligns with your overall trading strategy.
*Note: This analysis is for informational purposes only. Always do your own research and consult with a professional advisor before making investment decisions.*
Carvana Short Squeeze $CVNA NYSE:CVNA Carvana short percentage of float is 56% or is it headed to a double top, shown in the chart.
