• 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
  • Is This a Federal Open Market Committee Shake and Bake?
  • Equities Hit New All-Time Highs as Communications Joins Leadership Party
  • Market Maker Manipulation on AAPL Has Been Egregious in 2024
  • S&P Breaks Below 200-Day Moving Average: It’s Going to be a Big Volatile Ride
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

Markets: Week 1, Week 2 — What’s Next in Week...

January 10, 2024

Week Ahead: NIFTY Shows Early Signs Of A Likely Disruption...

September 7, 2024

Citi Predicts $3,000 Gold by 2025 — What You Need...

July 12, 2024

What We Will Use to Ascertain the Market’s Next Moves

October 10, 2023

The Hoax of Modern Finance – Part 9: Market Facts...

February 22, 2024

What’s Next for QQQ: Super Bullish to Super Bearish

July 1, 2023

Stock Market Rally Fizzles – What to Do Now

October 14, 2023

Mortgage Rates Continue Higher But Still Historically Low

February 24, 2023

The Vanity Trade 2024: All About Me!

December 27, 2023

Two Down and Two to Go – Capitulation and Thrust...

May 3, 2025

    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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

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

      June 27, 2024 2,765 views
    • 2

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

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

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

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    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

    The Hoax of Modern Finance –...

    February 1, 2024

    Price Pays… But For How Long?

    June 20, 2024

    Are Key Commodities Decoupling from Equities?

    January 16, 2024
    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