Carvana stock forecast is currently showing buy signals from both short term and long term moving averages which indicates a positive forecast for the stock . The relation between these two signals further supports a buy signal as the short-term average is above the long-term average . In case of downward corrections there is expected support from the price levels at $23 .21 and $14 .30 . If the stock breaks below these levels sell signals may be issued . Additionally a buy signal has been identified from the 3-month Moving Average Convergence Divergence (MACD) .
Negative Signals and Sell Points
While positive signals are very common some negative signals have also been identified which could influence the stock’s near-term development . A sell signal was issued from a pivot top point on Thursday June 15, 2023 which resulted in a 10 .84% decline so far . Further decline is expected until a new bottom pivot is established . It is worth noting that the volume decreased alongside the price during the last trading day which reduced the overall risk as volume should align with price movements .
Support Levels and Risk Assessment
Carvana finds support from collected volume at $23 .51 suggesting a potential buying opportunity as an upward reaction can be expected when this support level is tested . Still it is important to consider the stock’s instability . Carvana exhibits high volatility with a large prediction interval from the Bollinger Band which signals a very high-risk classification. In the past day the stock showed a price range of $3 .74 (16 .16%) between its high and low points . Over the last week the stock has shown a daily average volatility of 16.17 % .
Trading Outlook for the Upcoming Day
For the trading day on Wednesday June 21 2023 Carvana Company is expected to open at $24 .50 . Based on a 14-day Average True Range the stock’s projected trading range for the day is predicted to be between $20 .48 and $26 .56 providing a possible trading interval of +/- $3 .04 (+/- 12 .93%) relative to the previous closing price . If Carvana Company reaches the full calculated swing range then a major move of around 25 .85% between the lowest and highest trading prices may follow during the day .
Insider Trading Activity
When we take a look at the last 100 trades we see that there were 4 .45 million shares bought and 41 .75 thousand shares sold . The most recent trade was made by Palmer Stephen R who sold 419 shares 20 days ago . The significant number of stocks that are bought compared to stocks that are sold indicates that insiders perceive potential upside in the stock . In some cases larger purchases can be attributed to stock options’ due dates .
Final Thoughts
In general Carvana stock shows several positive short-term signals and exhibits a favorable trend . This suggests that the current level may present a buying opportunity with a reasonable chance for the stock to perform well in the short term . Nonetheless it is important to observe the identified support and resistance levels as well as the stock’s volatility and associated risks .
