CVNA possible price action on 7/21
Updated
Shorted CVNA when it broke support at $50 after a huge leg up on Wednesday. Looking ahead to Friday, VWMA and MACD on 15m chart could flip positive during early trading - pushing price up along the edge of the cloud - before hitting heavy resistance around $48.30. If the price follows the dotted arrow pattern, it may drop significantly before close or after hours.
Price went down slightly during after hours trading on Thursday and could crash to <$40 at open. The catalyst Friday will be whether dilution news is released, and if so, when. Going to watch closely in the morning before buying more puts, but overall I'm pretty confident that CVNA will continue to decline through the next week.
Expecting price to stay in the $38-$48 range 7/21.
Price went down slightly during after hours trading on Thursday and could crash to <$40 at open. The catalyst Friday will be whether dilution news is released, and if so, when. Going to watch closely in the morning before buying more puts, but overall I'm pretty confident that CVNA will continue to decline through the next week.
Expecting price to stay in the $38-$48 range 7/21.
Comment
Did not drop as much as I had hoped for today. I still feel like there is negative news brewing about this company as well as a spike in volatility next week that could come when the fed hikes rates that will lead to a drop in price. Expecting CVNA to hit $38 next week.
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