- Â Â Â Carvana’s stock does not pay any dividends to its shareholders.
- Â Â Â Carvana’s stock price is trading at $39.25 and the price has declined to $2.73.
- Â Â Â CVNA, has a share float of 84.5 Million.
The Carvana Co. (NYSE: CVNA) is a prominent e-commerce platform specializing in the buying and selling of used vehicles. The company has garnered significant recognition and popularity through its innovative online marketplace. Carvana has transformed the traditional car-buying experience by enabling customers to explore, secure financing for, and purchase automobiles online.
Based on a weekly analysis, the Carvana stock price displays signs of diminishing momentum, establishing new lows.
In August 2022, the stock price surged to a peak of $376.83; however, it plummeted by over 98% by the end of the year, hitting a new low. It found support near the $3.0 level and quickly rebounded, experiencing a rapid increase of approximately 1600% in just six months. Nonetheless, the price is encountering resistance at the previous level.
A breakout above the $54 resistance level could signal further upward momentum in the future. Yet, the overall structure hints at a potential downturn in the stock price. Despite multiple attempts, the price has struggled to breach the resistance.
Carvana’s (CVNA) price is hovering near the significant resistance level of $55.80. If this level is breached, the next resistance level is anticipated near $103.
The annual profit margin for CVNA stock has witnessed a decline. In 2021 the profit margin stood at -1.05%, dropping to -11.6% in 2022, indicating a negative performance. Additionally, the stock does not offer dividends to shareholders, potentially leading to decreased investor interest.
Carvana (CVNA) Stock Price Analysis
CVNA by writer50_tcr on TradingView.com
The price chart for Carvana’s stock displays the 50-day and 100-day EMA positioned above the current price level, suggesting the potential for a future price decline.
The RSI line for CVNA stock is trending toward the negative zone and is below the SMA line. These indications point to a likely price decrease in the days ahead.
Furthermore, the chart shows a consistent decline in trading volume, signifying reduced market activity. This diminishing volume suggests waning consumer interest, which could harm the stock price.
Conclusion
The analysis reveals that Carvana’s (CVNA) stock is moving in a downtrend. The price is near a resistance level, and tried multiple times to break out, but it failed. The indicators are also showing a negative signal for the stock. Thus, by looking at the alll the relevant factors, it can be concluded that the stock is forming a negative structure, and the price is likely to decline in the upcoming days.
Technical Levels:
· Support: The current support level of Carvana (CVNA) is $37.
· Resistance: The current resistance level of Carvana (CVNA) is $54.
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.