Tale of Two Fibonacci’s

This update said to watch for a CVNA retrace to levels between 227 – 233.

Last Thrudsay’s action reached and slightly exceeded the target(s).

With all of that, we now have Carvana at a confluence of Fibonacci levels.

Carvana CVNA, Daily

Note the corrective ‘a-b-c’ move to a Fibonacci 161.8%, projection.

That same corrective move is near the Fibonacci 61.8% retrace from the (recovery) high of 268.34, to the recent low 175.42, of January 3rd.

There’s so much ‘drama’ surrounding this equity that literally anything can happen.

Short interest (BigCharts) remains in the 10%, range; not moving appreciably in either direction for some time.

If the Hindenburg report is accurate, CVNA could vaporize at any time (not advice, not a recommendation).

However, that may not be the best use of CVNA’s (potential) woes.

Maybe a better opportunity is to think about what’s going to happen to all that inventory if things really go south.

How will that affect other competitors like CarMax?

Stay Tuned

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