Stock Of The Day: Is The Carvana Selloff Finally Over?

Core Viewpoint - Carvana Co. (NYSE:CVNA) is currently experiencing a downtrend, but there are indications that this may soon reverse, presenting a potential buying opportunity as the stock is oversold and at a support level [1][4]. Group 1: Stock Performance - Carvana's stock is trading lower on Tuesday, continuing a downtrend that began on October 1 [1]. - The stock is currently at a support level of $327, which was also a support level in July and August [1]. - The stock remains oversold, indicating that aggressive sellers have pushed it below its typical range, which may attract buyers anticipating a reversal [4][5]. Group 2: Market Dynamics - In the stock market, previous support levels can become significant again, as regretful sellers may repurchase shares when the price returns to these levels [3][4]. - If enough buy orders are placed at the support level, it can create renewed support, potentially leading to upward pressure on the stock [4][5]. Group 3: Technical Indicators - The Commodity Channel Index (CCI) is used to determine if a stock is oversold; when the CCI falls below a certain threshold, it indicates oversold conditions [6][7]. - The recent movement of the CCI suggests that Carvana may be poised for a rally, as it has just fallen below the red line and is showing signs of reversal [7].