CVNA Bear call spreadAdding a small Bear call spread on cvna, RSI bearish divergence major market volatility is increasing with tariffs and it's Double top.
70/75 exp June 21
Journal entry and not trading advice
0A79 trade ideas
$CVNA 80% GAIN IN 3 MONTHS, DON'T BE GREEDY.As earnings approach the options market has been very active in CARVANA. Noteworthy activity has been on the put side with unusual activity for the $35 and $45 strike puts. We do not hold the name but in the current market it would be wise to bank profits when the stock has the possibility if a double top forming. Give the fact that the price is well above the average Analysts estimate of $62 there is also the possibility of negative re-ratings post earnings.
Company Description
Carvana Co. is a holding company and an eCommerce platform, which engages in the buying of used cars and provision of different and convenient car buying experience. It operates through the following segments: Vehicle Sales; Wholesale Vehicle Sales; and Other Sales and Revenue. The Vehicle Sales segment consists of used vehicle to customers through website. The Wholesale Vehicle Sales segment comprises of the proceeds from vehicles sold to wholesalers. The Other Sales and Revenue segment composes of sales of automotive finance receivable originate and sell to third parties.
CVNA: This is going to make huge moveAfterall this name has huge shorts in it (56%) and also this is sitting at Double Top. Few key indicators to keep in mind:
1. Has been at Overbough situation for last 60 days.
2. They have not yet penetrated into bigger mkt yet and the potential is huge.
3. Negative divergence.
You decide. I know what I am playing.
Back Above the MA'sWe managed to rise above the 2 MAs relevant here. This is a sign thatthere is no selling pressure at least.
CVNA, you soar too high. I think CVNA is going to blow off some of these gains because Cramer noticed it and talked about it.
This is where we can test the Power of (very entertaining) Television Personalities.
I heard Cramer explain that this stock has no reason to be on such an upward tear. When I got home, I checked the charts. Indeed... there's no arguement. It's jammin. But why?
And I'll bet most of Cramer's viewers did the same thing today. And they're thinking the same thing. And a few are gonna sell.
So I think that a little put vertical is in order.
Detailed Elliot Wave count + possible projectionI think this stock has followed a semi-clean Five wave up, Three waves down from its inception and now is possibly going for completing the third wave. I the mentioned third wave, I think we can now identify the two sub-waves of the first leg in the weekly.
The "New" way to buy a car? No way.Investors are always on the look out for the new and innovative. Although Carvana fell -6% on its IPO debut, it has seen growth up to $71 a share based on the advantages of Carvana. Today, we see a a drop of 60% from the ATH . As more and more dealerships get on board with a money-back guarantee, the advantages of Carvana start falling very fast. Traditional dealerships have shipped vehicles long before Carvana inception. Traditional dealerships still hold the advantage of face-to-face interactions, lenders, interest rates, and accountability. Carvana is just another way to buy, and not the new way to buy a vehicle. With this, expect share price to continue in its downtrend to its IPO price or lower. Morgan Stanley also slashed its outlook for Carvana for another 40% from current prices.
Should continue lower!!NYSE:CVNA Short below 34.82
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Please note that this information is not a recommendation to buy or sell. It is to be used for educational purposes only.
Could BREAKDOWN nicely!!!NYSE:CVNA Short below yesterday's daily VWAP
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Please note that this information is not a recommendation to buy or sell. It is to be used for educational purposes only.
CVNA falling knife, wait for the trade...CVNA is in a falling wedge and failed to hold above the 236 from ATH to recent swing low, super bearish. Daily bearish divergence playing out on the MACD, RSI showing continuation of the bear trend. VFI is super bearish indicating low money flow. All on daily time scales.
There is weak support at 27.65, with major supports being both 23.60 and the bottom of the channel. If the channel doesn't hold, the 786 from the major swing is the next psychological support, as well as the bottom of the wedge w/ stronger supports at 19.20, 16.75, 12.46 prices.
It could make A BIG MOVE!!!NYSE:CVNA I'd like to see this one move sideways to consolidate and gain some strength in the morning before it gets going (just like drawn on the chart). buy as a swing trade above 37.14, with a stop at 35.48; however, if the stock gaps up at the open or breaks through the resistance without any pullback, then don't chase it.
Please like and comment if you like my ideas. THANK YOU!!!
Please note that this information is not a recommendation to buy or sell. It is to be used for educational purposes only.
CVNA Breaking Out of DowntrendCVNA has broken out of a downtrend that started in mid September. It is also testing the resistance line of a rounding bottom that started forming in early December. I went long near the closing price of the breakout day based on break of downtrend. This trade would be considered premature in terms of the rounding bottom thesis but I may add to my position if it goes my way and the rounding bottom is proven. The RSI is right around 54 at the moment indicating that there is room to run much higher.
Stop loss is set just below the low of the last day inside the downtrend: $34.70 or 6% risk.
Ideal target is the approximate height of the round bottom which is $8.50: $45.40 or 23%.
Risk/ reward is: 3.84
WHY THIS TRADE MIGHT FAIL:
Target was established based on assumed completion of another pattern.
Volume on breakout day was less than ideal.
Rounding bottom volume approximately but far from perfectly matches the shape of the bottom itself.
The $40 is a key level which could impede reaching the full target.
Good luck have fun.
Beautiful set up.I missed this, since it wasn't even on my watchlist just noticed in today scan. Sometimes I feel weekends slow me down, but they can be helpful.
Set up is so nice in this, and looks set to continue so still a buy.
Head and Shoulder formation?I hope this doesn't happen but keep an eye for the right shoulder.
The CEO, Garcia has also been doing a lot of selling since September. He stopped the selling since Oct 17th. Let's see if the pressure been lift off.
CVNA Watching WedgeWould like to see impulsive breakout above wedge, and the corresponding PPO crossover...
$CVNA Carvana Bullish Ascending Triangle$CVNA Carvana Bullish Ascending Triangle. Buy signal will be strong break through $56 resistance. They had me at car vending machines.
Targeting $60-$62 range near term
Carvana is not done going upShort term i see this stock consolidate a bit, we are way oversold. But this stock is not done going up, carvana is a real business disruptor.
Conservative price target for this stock is 50 dollar per share.
In best case scenario, you could see this stock soar to 3 digits.
