$CVNA pauses in “Go” trend with momentum neutral

$CVNA pauses in “Go” trend with momentum neutral


August 2023


Alex Cole

$CVNA has been in a "Go" trend since early May.

Having made a series of higher highs and higher lows since then the "Go" trend has been strong. During that time, GoNoGo Trend has painted all blue and aqua bars and GoNoGo Oscillator has stayed above or at zero. That is as it should be when the trend is strong.  We look now at the chart and see that price has corrected off the most recent high and moved mostly sideways since the Go Countertrend Correction Icon (red arrow).  GoNoGo Trend has painted a string of weaker aqua bars and GoNoGo Oscillator has fallen to test the zero line from above. Stuck at that level, riding the zero line, we see a GoNoGo Squeeze building showing a tug of war between buyers and sellers.  We will watch to see in which direction the Squeeze is broken.  If the "Go" trend is strong, the Squeeze will be broken into positive territory and we will be able to say that momentum is resurgent in the direction of the "Go" trend.  In that scenario, we would look for price to make an attack on another higher high.