Your cart is currently empty!
Carvana is Now Oversold (CVNA)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of Carvana Co (Symbol: CVNA) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $199.05 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.4. A bullish investor could look at CVNA’s 28.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of CVNA shares:
Looking at the chart above, CVNA’s low point in its 52 week range is $40.2092 per share, with $268.3392 as the 52 week high point — that compares with a last trade of $202.76.
Find out what 9 other oversold stocks you need to know about »
Also see:
AMPI Options Chain
CBLK YTD Return
LUXA shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Carvana, the online platform for buying and selling used cars, has seen a surge in popularity in recent months. However, with its stock price reaching new highs, many investors are now concerned that the company may be oversold.
Despite the company’s impressive growth and strong financial performance, some analysts believe that Carvana’s current valuation may be too high. With a price-to-earnings ratio well above the industry average, there are worries that the stock may be overvalued.
Investors should proceed with caution when considering investing in Carvana at its current levels. While the company has shown great potential, there is always the risk of a market correction or a shift in consumer preferences that could impact its future growth.
As always, it’s important to do thorough research and consider your own risk tolerance before making any investment decisions. Carvana may be a promising company, but it’s crucial to approach its stock with a level-headed perspective.
Tags:
Carvana stock, Carvana news, CVNA stock, Carvana oversold, Carvana analysis, Carvana investing, Carvana update, Carvana performance, Carvana market, Carvana forecast
#Carvana #Oversold #CVNA
Leave a Reply