During the pandemic, Carvana (CVNA) was the new hot thing, rising from $22 to around $372.
Everyone needed a car and no one wanted to be around people.
What a perfect stock.
Until people were able to go outdoors.
And the Bear Market hit.
Then it became the worst stock.
After its meteoric rise, CVNA fell way below its long-term moving average (aka “fair value”) and even got close to the lower Band.
The former shining star was sitting down at $9 still in 2023.
Here’s the Daily chart:
But at that time in 2023, “fair value” was up around $150.
Yes, it might not get all the way up to that level, but it might have been worth a shot.
Even if it went from $9 to $100, that’s a massive win.
And that’s what it did.
Since 2023, CVNA has gone from the $9 level all the way through its “fair value” line at $115.
That was a huge deep value move.
And the move may not be over.
Happy trading,
— Scott Welsh
Rate Cuts Are Coming… And That Means Volatility!
Did you know a recession almost always occurred within 12 months following a rate cut…?
With the Fed’s recent shift in tone, that cut could come as soon as September!
