"CVNA has big reward potential during earnings season." Nate Bear, Lead Technical Tactician, Monument Traders Alliance Editor's Note: Are you going to be at Nate's LIVE Mission Briefing at 2PM ET Today?!? Nate will reveal how he has beaten the market 22X so far this year... And how he plans to target MULTIPLE 165% winners with his "Sector Strike" trading strategy. You must RSVP now though to attend. (CLICK HERE TO RESERVE YOUR SPOT). -Stephen Prior (Chat Moderator, MTALIve) Earnings season is officially underway. And there are plenty of strong setups I'm looking at using my "Post-Earnings Surge" strategy. One chart I love right now is Carvana (CVNA). It has everything I look for in a trade. However, this stock has a history of high volatility – so make sure you position size accordingly. Here's why I like CVNA as a "lotto" play this week. Lotto Trading 101 Lotto trades are a higher risk play because they typically expire in less time. But they offer plenty of big reward potential as well. As you'll see in the chart above, CVNA has all the makings of an A+ setup. It has a clear trendline, a pattern, and a squeeze. It also has earnings coming up next week – which could work as another potential catalyst. Plus, it's near all-time highs, and as you'll see in the chart below, its recent higher moves is showing us a really nice bull flag. With all these catalysts, CVNA is an "A" setup right now. But what could make it an "A+" setup is a momentum shift off its squeeze. If we get that momentum shift, we could see moves into the $360-$370 range. I'll be looking to buy on any pullbacks from those higher moves as well. |
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