After The Top, Lower

Even as price reached its after-hours high of 310, on February 19th, and posted down ever since, short interest continues to decline.

As BigCharts reports, short-interest is now at 6.5%.

First, it was 33% short, then it dropped to 10%, then 7.8%, and now 6.5%, all the while, it looks like we’ve passed the top (not advice, not a recommendation).

The last update showed a trading channel that has since been negated. So, what’s price action doing now?

Carvana CVNA, Daily

As of this post (10:47 a.m., EST) price action has yet to define another channel … if there is one.

What we do have, is a Fibonacci time sequence in effect thus far.

At this juncture, we’re far away from the magenta (target) oval and Fibonacci Day 34.

However, as outlined by Car Questions Answered, this time of the year, typically has tax refund purchasing.

So, there’s a (possible) tailwind to the upside.

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