Carvana (CVNA) has captured the attention of traders with its high volatility and potential for significant gains. Here’s a quick look at the technical setup that could drive Carvana’s next big move.
High Beta Stock: Carvana’s stock has been highly volatile, skyrocketing from $25 to $174 in a short period, demonstrating its high beta status.
Bull Flag Formation: After an impressive rally, Carvana’s price action has consolidated into a classic bull flag pattern. This technical structure often indicates a continuation of the upward trend.
Decreasing Supply: During this consolidation, supply has been decreasing, further strengthening the bullish outlook for the stock.
Entry Points: Traders are watching closely for a breakout from the bull flag or a pullback to key levels for potential buying opportunities. This presents a chance to enter the market at a favorable point.
Stop Loss Considerations: Given the stock’s volatility, the stop-loss level is trickier, sitting around $156 to manage risk effectively.
Price Target: Should the breakout occur, the next target for Carvana could be a significant move toward $240.
Carvana (CVNA) Stock Trading Plan VideoWatch the short video below to find out the detailed trading plan for CVNA:
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