Carvana Co. is a holding company. Co. operates an e-commerce platform for buying and selling used cars. On the Co.'s platform, consumers can research and identify a vehicle, inspect it using its 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from their desktop or mobile devices. It also provides automated vehicle valuations for buying vehicles from customers with or without a retail purchase, automated financing, vehicle service contracts (VSC), auto insurance, GAP waiver coverage, limited warranty, and other ancillary products.
When researching a stock like Carvana, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CVNA Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CVNA stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CVNA 200 day moving average ("CVNA 200 DMA"), while one of the most popular "shorter look-backs" is the CVNA 50 day moving average ("CVNA 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Carvana. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CVNA 200 DMA and the CVNA 50 DMA, we get a moving average convergence divergence indicator ("CVNA MACD"). The CVNA MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis