Carvana Co. (CVNA) Elliott Wave Analysis | Trading Lounge Daily Chart

Carvana Co. (CVNA) Elliott Wave Technical Analysis 

Function: Counter-Trend

Mode: Corrective

Structure: Corrective

Position: Wave (C) of 2

Direction: Downward targeting Wave (C)

Details: After completing a 5-wave impulsive rally, CVNA is now entering a correction toward Wave (C) of 2.

On the daily chart, Carvana Co. (CVNA) has ended its impulsive five-wave structure and is currently undergoing a corrective move. The ongoing correction resembles a flat pattern, with prices expected to find support above the 131.8% Fibonacci retracement measured from Wave (A) to Wave (B). This suggests the final segment of the correction is forming.

As Wave (B) wraps up, the anticipated downward Wave (C) is projected to complete Wave 2. This movement may present a short-term bearish trading opportunity, ideal for tactical setups near the correction's final leg.

Carvana Co. (CVNA) Elliott Wave Analysis | Trading Lounge Weekly Chart

Function: Trend

Mode: Impulsive

Structure: Impulsive

Position: Wave 3 of III

Direction: Upward heading into Wave 3

Details: A retracement to Wave 2 is expected before the bullish Wave 3 begins.

On the weekly timeframe, CVNA stock is maintaining its bullish trend within a larger impulsive Elliott Wave structure. The share price is advancing toward Wave 3 of Wave III, but a short-term pullback to Wave 2 is projected before this next leg unfolds.

Traders should monitor potential support zones around Wave 2, and once confirmed, the development of Wave 3 could offer a long trade setup aligned with the ongoing upward trend in Carvana's stock price.

Technical Analyst: Dhiren Pahuja

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