• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock The SCTR Report: Carvana Stock Makes It To Top of the Podium Today
Stock

The SCTR Report: Carvana Stock Makes It To Top of the Podium Today

by August 5, 2024
by August 5, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

On a day when the S&P 500 ($SPX) drops over 200 points at the open, and the Dow Jones Industrial Average ($INDU) and Nasdaq Composite ($COMPQ) drop more than 1,000 points, looking at your portfolio value can be discouraging. 

But it shouldn’t be. On days like this, there’s more reason to get proactive about stabilizing your financial portfolio. There are always opportunities in the stock market. The StockCharts Technical Rank (SCTR) is a helpful tool for identifying strong stocks with the potential to generate high returns. 

Today’s SCTR gold medal position in the Large Cap category is held by Carvana Co. (CVNA).

CARVANA STOCK RANKS #1 IN THE LARGE CAP CATEGORY.

Carvana Stock Ready To Ride

Let’s do a deep dive into Carvana’s technicals, starting with the weekly chart.

CHART 1. WEEKLY CHART OF CARVANA STOCK. The stock has started trending higher and could be a buying opportunity. Chart source: StockCharts.com. For educational purposes.

Going back five years, you can see that CVNA has had its glory days until August 2021, when its decline started. The stock price dropped from a high of $376.83 to a low of $3.55. After hibernating at its lows for over two years, the stock started showing signs of waking up. 

The stock price broke out of a cup-and-handle pattern in February 2024 and has been trending higher since then, with a series of higher lows and higher highs (see blue dashed trendline). The SCTR score started rising as early as April 2023, crossing above 90 in May of that same year. The SCTR declined briefly from January to February 2024 and has retained its position above 90 since then. This action in the SCTR should have prompted investors to keep CVNA on their radar as a potential investment. The pullback in April 2024 and bounce off the upward-sloping trendline would have been an ideal time to enter the stock. At that time, the relative strength index (RSI) was crossing above the 70 level. CVNA has pulled back to its trendline and bounced off it. This upside bounce would present an opportunity to go long the stock. Note that price is close to its 38.2% Fibonacci retracement from the August 2021 high to the December 2022 low.

When’s a Good Time To Buy CVNA Stock?

With a SCTR score of 99.9, CVNA is a buy candidate, but it’s best to look at other indicators to confirm an entry point. Let’s switch to a daily chart of CVNA to identify entry and exit points.

CHART 2. DAILY CHART OF CVNA STOCK PRICE. The daily chart shows an uptrend, but the RSI is moving lower. Chart source: StockCharts.com. For educational purposes.

The trend is still to the upside, short- and long-term. For a massive selloff day in the overall stock market, CVNA’s price action is a spark of optimism. After hitting a low of $118.50, buyers came in, and the stock price traded above its shorter-term trendline and 21-day exponential moving average (EMA), which is sloping higher. 

The RSI is above 50 and is trending lower. An encouraging sign would be to see it turn higher, even if slightly. Assuming all the other indicators mentioned above continue to support further upside in the stock, including above-average volume, I’d look for RSI to turn higher and price to move above $144.70, the 38.2% Fib retracement level from the weekly chart to enter a long position.

When Should You Exit CVNA Stock?

As a general rule, you should exit your trade any time your entry conditions are violated. If you open a long position, place a stop loss at a significant support level. For example, if you buy CVNA at $144.80, just above the 38.2 Feb level, place a stop loss just below the 21-day EMA. Depending on your risk tolerance level, you could apply a shorter-term EMA. If the stock continues to move higher, use the EMA as a trailing stop level. 

Price targets can be set at the Fibonacci levels from the weekly chart. The first would be $189.02, and the next would be $233.35. 

CVNA has the potential for a high return with relatively low risk. This one is worth watching very closely. A buying opportunity could be just around the corner. 

Thanks, SCTR!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Carley Garner: How I Survived in the Commodities World
  • Small-Caps Take Pole Position In Overbought Market
  • Here’s My Latest View of Current Market Action
  • Spotting Downturns Early: Daily or Weekly Charts?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Doug Emhoff’s ex-wife responds after second gentleman admitted to affair with nanny
next post
Stocks Get Defensive as Market Index Enters “NoGo”

You may also like

Stock Market Weekly Wrap-Up: The Charts You Need to Have...

September 30, 2023

Using the ATR Trailing Stop to Manage the Trade and...

March 8, 2024

GNG TV: Remaining Objective About Trading Rules is CRITICAL!

January 5, 2024

The BEST Simple Moving Average Trading Strategy

February 5, 2025

Trade What You See; Profits are Waiting Beyond the Daily...

May 1, 2023

Decisive Long-Term Breakout for Gold

March 15, 2024

Navigating the Indecisive SPY: What Investors Should Know

December 19, 2024

Should we Continue Taking Trend Signals after Whipsaws?

February 25, 2023

The Ord Oracle August 22, 2023

August 23, 2023

DP Trading Room: Which is Better? SP600 (IJR) or Russell...

October 21, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Oil Prices Soar Amid Middle East...

    October 8, 2024

    A Big Inflection Point in QQQ...

    September 17, 2023

    RRG Shows Explosion In Growth Stocks...

    October 8, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here