CVNA Dips Sharply, Bearish Momentum Persists

Trend_Radar
01-05

$Carvana Co.(CVNA)$

CVNA Plunged -5.16%: Key Support Tested Amid High-Volume Selling

Latest Close Data:

Closed at $400.25 on 2026-01-05, down -5.16% ($-21.77). The stock is now ~17.5% below its 52-week high of $485.33.

Core Market Drivers:

Significant daily net capital outflow of ~$59M highlights strong selling pressure.

The high short volume ratio (20.36% on Jan 2nd) suggests persistent bearish sentiment from short sellers, contributing to the downward momentum.

Technical Analysis:

  • The stock traded with high volume (4.7M shares, Volume Ratio 3.46), confirming the sell-off.

  • The 6-day RSI at 21.48 is deeply oversold, hinting at a potential near-term bounce.

  • MACD remains bearish with a negative value of -16.66, indicating the downtrend is still intact.

Key Price Levels:

  • Primary Support: $390.87 (Today's Low) - A break below could trigger further decline.

  • Strong Resistance: $451.02 - The recent high that needs to be reclaimed for a bullish reversal.

  • Immediate Pivot: $400.25 (Today's Close) - The battle line for the next session.

Valuation Perspective:

TTM P/E of 99.68 is significantly elevated, suggesting high growth expectations are priced in. Forward P/E of 56.77 is also above its historical average of 9.01, indicating a premium valuation.

Analyst Targets:

24 analysts have an average price target of $439.46 (+9.8% upside), with a majority recommending Buy or Strong Buy (20 out of 27), showing a disconnect between current price action and long-term institutional sentiment.

Weekly Outlook:

Expect consolidation or a technical bounce from oversold RSI levels in the $390-$420 range. A decisive break below $390 could target $375-$380. A recovery above $420 is needed to challenge the $435-$451 resistance zone.

Risk Disclaimer:

This analysis is for informational purposes only and not financial advice. Trading involves substantial risk. Past performance is not indicative of future results. Always conduct your own research.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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