Carvana has been stuck in a “NoGo” since September of last year.
Each time GoNoGo Oscillator rallied to the zero line during this time it was soundly rejected. NoGo Trend Continuation icons (red circles) gave investors several options to participate in the move lower as they signaled renewed momentum in the direction of the “NoGo” each time. Now, as prices come off the lows, we saw slight bullish divergence between the oscillator and price and GoNoGo Oscillator broke significantly through the zero line into positive territory on heavy volume. As price moves sideways, GoNoGo Oscillator rides the zero line as a max GoNoGo Squeeze builds. We will look to see if it finds support at zero and returns to positive territory. Of course, the “NoGo” trend is still in effect while the indicator is painting pink and purple bars, but these are early bullish signs of a changing technical environment.
