CVNA closes higher for the 2nd day in a row
Carvana Co. Class A (CVNA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CVNA ended Wednesday at 175.90 gaining $3.98 (2.32%), significantly outperforming the S&P 500 (-0.46%). Trading up to $4.91 lower after the open, Carvana Co. managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 174.81, the stock confirmed its breakout through the prior session high after trading up to $3.12 above it intraday.
Daily Candlestick Chart (CVNA as at Sep 16, 2020):
Wednesday's trading range has been $10.59 (6.15%), that's slightly below the last trading month's daily average range of $11.27. 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. Prices continued to consolidate within a tight trading range between 167.34 and 178.36 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After spiking up to 177.93 during the day, the market found resistance at the 50-day moving average at 175.94. The last time this happened on April 9th, CVNA actually gained 22.71% on the following trading day. The share found buyers again today around 167.34 for the third trading day in a row after having found demand at 168.01 in the previous session and at 169.03 two days ago.
Though CVNA is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Its common bearish interpretation has been confirmed for Carvana Co.. Out of 10 times, CVNA closed lower 80.00% of the time on the next trading day after the market condition occurred.