Carvana Stock Price up 10%; CVNA Stock preparing for rally?

• Carvana Stock Price (NYSE: CVNA) rises 23% on a weekly basis.
• CVNA Stock price formed a double bullish pattern. 
• Carvana Stock witnessed a massive spike in the buying volume.

Carvana Stock Price (NYSE: CVNA) rose 23% on a weekly basis and broke out of the $20.00 hurdle level. It formed a double bottom bullish reversal pattern and buyers succeeded to break the neckline hurdle. 

Carvana Stock witnessed a massive surge in the buying volume. It shows some genuine investors have turned bullish after quarterly earning and expecting turnaround in the stock. 

CVNA Stock price sustained above the 50 day EMA shows that the short term trend is working in favor of bulls. Recently, the buyers attempted to break the 200 day EMA to turn the positional trend in upward direction but the confirmation is still awaited. 

Carvana Stock price gained momentum after the release of quarterly earnings on May 4, 2023. CVNA beat the EPS estimate by 28% due to which stock prices reacted positively and shot up 24% in a single day. 

The prices continued the momentum and showed a surprisingly rally in the current month. However, up-move is real or temporary is difficult to interpret but till price holds $16.00 the buyers will remain active.

Carvana Stock price closed the previous session at $23.51 with an intraday rise of 10.58%. The market capitalization stands at $4.45 Billion. 

Will the momentum continue in Carvana Stock

Carvana Stock price consolidated for more than 8 months in a range between $5.00 to $20.00. Finally after waiting for a long CVNA stock is showing initial signs of range expansion. 

If the buyers are able to hold the prices above $16.00 then more rally is possible and prices might begin the journey toward $40.00. On the other hand, if CVNA stock price faces rejection and drops below the $16.00 then the up-move will be considered as a trap. 

Carvana stock price has rallied too much and seems overstretched. Therefore, minor retracement toward 50 day EMA or narrow range consolidation is possible.

What does Price analysis indicate in CVNA Stock?

CVNA Stock Price is rising for 7 consecutive weeks shows buyers are more active as compared to sellers. The quarterly earnings fueled the rally and the momentum is still intact. 

The volume analysis and price analysis both indicate that more rally is pending.

The MACD curve is rising upward and generating a positive crossover. It shows that CVNA stock is in bulls grip and bullish trend reversal is possible. The RSI at 69 slopes upward denotes the strength of bulls and possibility of continuing the rally is high. 

Conclusion

Carvana Stock Price (NYSE: CVNA) rose 23% on a weekly basis and reached the yearly high. The momentum in the CVNA stock is intact and indicating more rally is possible. 

However, the prices seem overstretched due this minor retracement or consolidation is also possible.

Technical levels

Resistance levels: $27.00 and $42.00

Support levels: $16.00 and $8.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.