CAVA’s Post-Earnings Surge: Key Setup And Trade Strategy -

CAVA’s Post-Earnings Surge: Key Setup And Trade Strategy

Sep 13, 2024Jeremy ParkinsonFinance, No picture0

Image Source: UnsplashCAVA Group (CAVA) has recently hit an all-time high, thanks to its strong earnings report, displaying significant relative strength even as broader markets like the S&P 500 have experienced a drawdown. This strength showcases CAVA bucking the trend, making it an attractive stock to watch.Currently, CAVA is forming a flag pattern, a continuation signal that suggests the stock may break out to test the all-time high around $130. The recent rejection tail seen on the chart, along with rising volume, suggests that traders should be cautious about immediate breakouts, but the setup remains strong.Support zones for the stock sit around $109 to $112, and traders can choose to set either a tight stop-loss at these levels or a wider stop, depending on risk tolerance. For those looking to enter, yesterday’s high could serve as a pivot point – a break and close above this level might offer a buying opportunity.With decreasing volume and smaller candles, any signs of consolidation could further encourage bulls.Overall, this post-earnings setup presents an exciting opportunity for traders to capitalize on CAVA’s momentum, especially if the stock breaks above resistance levels.Watch the video below for a detailed discussion of CAVA’s trading plan:Video Length: 00:03:23More By This Author:S&P 500: Is The Bottom Finally In Or More Weakness Ahead?
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