Carvana Co.
Short

Stock Of The Day / 01.03.25 / CVNA

01.03.2025 / CVNA

Fundamentals. 5% drop after negative report from Hindenburg Research.

Technical analysis.
Daily chart: Correction on an uptrend. The stock looks weaker than the market.
Premarket: Gap Down on moderate volume. We mark the level of 182.00, the low of the previous session's post-market.
Main session: The price continued its local downtrend after an attempt to grow in the first half of the trading session. The first attempt to break through the level of 182.00 at 13:57 did not lead to a significant pullback and the price continued to squeeze towards the level. After the second touch, we observe an even weaker pullback, which indicates the weakness of buyers. After the breakdown and retest, the price holds the level of 182.00 from the opposite side of the level. We are considering a short trade.

Trading scenario: breakdown with retest of level 182.00

Entry: 181.34 exit down from the range on increased volume.

Stop: 182.16 we hide it behind the level.

Exit: Close part of the position at 15:22 when a reversal candlestick pattern appears. Close the remaining part of the position above 177.72 when the structure of the downtrend is broken.

Risk Rewards: 1/5

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