Reversal & Channel

Using the ‘Way Back Machine’, and this post, we see Fibonacci time correlation with respect to the February 19th, high.

As noted, ‘Day 89’, was shown as June 26th, which is today.

From the chart, it appears CVNA, reversed yesterday, and today, has potentially verified a trading channel.

Carvana CVNA, Daily

The channel lines shown, are exactly parallel and declining @ 99.9%, annualized.

As of this post, price action has penetrated minor support in the 308.70-area, so there’s a potential for an attempt to rally into the close.

While there could be a rally to post new (daily) highs, the fundamental backdrop, link here, favors the downside (not advice, not a recommendation).

Currently short as CVNA-25-06, with stop at the session high (not advice, not a recommendation).

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