CVNA closes within prior day's range
Carvana Co. Class A (CVNA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CVNA ended the month 28.91% higher at 154.95 after losing $0.92 (-0.59%) today, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CVNA as at Jul 31, 2020):
Friday's trading range has been $6.30 (4.01%), that's slightly above the last trading month's daily average range of $6.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CVNA.
Prices are trading close to the key technical resistance level at 156.33 (R1). After having been unable to move above 157.44 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 157.74. The last time this happened on July 23rd, CVNA actually gained 0.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 148.49 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Carvana Co.. Out of 81 times, CVNA closed higher 58.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.85% with an average market move of 2.65%.