CVNA closes higher for the 3rd day in a row
Carvana Co. Class A (CVNA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CVNA ended the week -0.27% lower at 88.62 after gaining $1.22 (1.4%) today on low volume, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 88.06, the market confirmed its breakout through the previous session high after trading up to $1.05 above it intraday.
Daily Candlestick Chart (CVNA as at Feb 14, 2020):
Friday's trading range has been $1.85 (2.11%), that's far below the last trading month's daily average range of $3.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CVNA.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 26, 2019, CVNA actually lost -0.63% on the following trading day.
Prices are trading close to the key technical resistance level at 90.71 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 90.81 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Carvana Co.. Out of 27 times, CVNA closed lower 59.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.96% with an average market move of 1.35%.