Top Of The Squeeze?

Question: Who’s going to buy from Carvana, knowing they’re clearing over $7,000 profit on every sale?

The latest earnings release states they’re making Gross Proft per Unit, of $7,049, vs. a more reasonable $529, from just one year ago; that’s over 1,200% increase!

Months ago, after the last CVNA earnings release, the father/son team of CarEdge found the operating numbers to be very curious.

Carvana CVNA, Daily

Price action is at a new high, and hesitating (not advice, not a recommendation).

Volume for the day (thirty minutes before close) has increased.

MACD is posting a bearish divergence and price action appears to be holding right at resistance (blue line).

All of which indicates, we may be at The Danger Point®.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279