Carvana Falls 3.6% Will $440 Support Hold

$Carvana Co.(CVNA)$

Carvana Co. (CVNA) Drops -3.61%: Used Car Giant Hits Resistance at New 52-Week High $485, Profit-Taking Emerges

Latest Close Data

CVNA closed at $455.68 on December 15th, down -3.61% (-$17.05) from previous close of $472.73.

Stock touched new 52-week high of $485.33 before retreating, currently trading 6.1% below intraday peak.

Core Market Drivers

Used car market facing seasonal headwinds as year-end inventory adjustments weigh on momentum.

Strong institutional buying ($1.07B large block inflows) suggests continued confidence despite profit-taking pressure.

Holiday shopping season shifting consumer spending away from big-ticket purchases temporarily.

Technical Analysis

Volume at 6.21M shares (0.98x ratio) indicates normal trading activity.
RSI(6) cooled to 74.33 from overbought 95+ levels, signaling healthy pullback.
MACD remains bullish with DIF at 33.77 above DEA 22.37, though momentum slightly weakening from recent peaks.

Key Price Levels

Primary Support: $318.67 (strong demand zone)
Immediate Pivot: $467.67 (recent resistance turned support)
Strong Resistance: $485.33 (new 52-week high)

Valuation Perspective

Trading at P/E 113.48x (TTM) vs Forward P/E 88.08x, indicating growth expectations.

P/S ratio 5.43x remains elevated for auto retail sector but justified by digital transformation story and improving margins (ROE: 68.15%).

Analyst Targets

24 analysts maintain average target of $430.92 (range: $330-$550).

Strong institutional backing: 8 Strong Buy, 11 Buy, 6 Hold, 1 Underperform. Current price trades 5.8% above consensus target, suggesting near-term caution warranted.

Weekly Outlook

Expect consolidation between $440-$480 range as stock digests recent gains.

Break above $485 targets $520-$550 zone. Key support failure below $440 could trigger deeper correction toward $400 psychological level.

Risk Disclaimer

This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.