Carvana Co.Long
CVNA Analysis - Cup and Handle
Updated
Subject: Cup and Handle Formation
Based on my charting analysis it's evident that a cup and handle pattern has formed on CVNA. This is highlighted by the lime green lines on the chart. The RSI and Volume indicators show a progressing upward trend to break through established resistance at $36.63. This resistance level was re-established by a retest on 11/15/23 notated on the chart. I believe the price will continue to consolidate and possibly retest support at the identified $24.98 level. This support level is strengthened historically by past support levels in 2022. The price is also consolidating at the 200 day moving average (highlighted purple) while it's beginning to approach the 50 day moving average (highlighted light blue).
I'm forecasting that the price will continue to consolidate and possibly retest support down at the $20.50 level. This could become even more possible after Amazon announced it will be launching online vehicle sales. My key level of entry will be above $37 for true confirmation on the bullish uptrend. Should the price drop below key support at $20.50 I will look to the downside and target the $10 mark. I will continue to update as time progresses.
Based on my charting analysis it's evident that a cup and handle pattern has formed on CVNA. This is highlighted by the lime green lines on the chart. The RSI and Volume indicators show a progressing upward trend to break through established resistance at $36.63. This resistance level was re-established by a retest on 11/15/23 notated on the chart. I believe the price will continue to consolidate and possibly retest support at the identified $24.98 level. This support level is strengthened historically by past support levels in 2022. The price is also consolidating at the 200 day moving average (highlighted purple) while it's beginning to approach the 50 day moving average (highlighted light blue).
I'm forecasting that the price will continue to consolidate and possibly retest support down at the $20.50 level. This could become even more possible after Amazon announced it will be launching online vehicle sales. My key level of entry will be above $37 for true confirmation on the bullish uptrend. Should the price drop below key support at $20.50 I will look to the downside and target the $10 mark. I will continue to update as time progresses.
Note
This aged well - continuing to watch the breakout to the upside. More than likely it will hit resistance above the $50 price target a few more times. Once it picks up liquidity again down around the $40 range, it will likely continue trending. This hinges on the the Q4 earnings report.
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