Carvana, In Position

Yesterday, it was CarMax.

Today, it’s Carvana.

Before we get to Carvana, yesterday’s update also said, we’d have no shortage of ‘post-mortems’.

Well, here they are:

“Mr. Market Will Keep Searching (Lower) For A Put Strike” – Goldman Hedge Fund Honcho Warns ‘Trading Environment Remains Exceedingly Fluid’

Why It Should Not Bounce Here Yet

Why It Should Bounce

You can’t make this up. Those two headlines (above) were one after another on ZeroHedge.

That’s probably enough. You get the idea. 🙂

In the case of Carvana, let’s look at what the price action is telling us is the most likely event.

Carvana, CVNA, Daily

After-Hours on April 2nd, trading posted briefly at 243.6, within the purple oval, creating an ‘Up-Thrust’.

Last Friday’s action penetrated support and is holding.

Note the price range of that day’s bar is less than Thursday’s, with volume slightly larger.

For now, CVNA, has stopped dead at support.

There may be follow-through on Monday, but with the (YouTube) crowd and others expecting a ‘crash’, that makes is less likely (not advice, not a recommendation).

When a real expert warns of a crash, it may look something like this (time stamp 6:42).

Note the condescension from the other panel member.

Then came Monday, October 19th, 1987.

Stay Tuned

Charts by StockCharts

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