Trade of the Day – Carvana Co. (NYSE: CVNA) January 22, 2024 369

Trade of the Day

Carvana Co. (NYSE: CVNA)

(Current Price: US$44.92) – TECHNICAL BUY

Buy price: US$44.92     Stop loss: US$41.00 (-8.73%)    

Take profit 1: US$56.80 (+26.45%)     Take profit 2: US$61.60 (+37.13%)          

 

 

(1): Carvana Co. broke out of a cup & handle formation, highlighted in blue, on Friday, 19 January

(2) & (3): Additional bullish signals include the price rebounding after retesting a confluence of supports at the US$42 level – an uptrend support line and a previous horizontal resistance in December 2023

We believe should the price rebound from the current retest of multiple supports, it could head towards the first resistance level at US$56.80, which was a horizontal resistance from July to September 2023. It could then head higher towards the second resistance level at US$61.60, a retest of the swing high formed in December 2023

Expected timeline of the trade is 1-8 weeks from the date of report issuance

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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