CVNA (Carvana Co.) offers an objective short entry for a new swing trade here on this overbought rally into the key 200-day EMA resistance with potential divergences forming. As with the previous short trade from early May (first chart below), my preference is to keep stops relatively tight on this one as well with a suggested stop of 10% over the 200-day EMA that is currently being tested.
CVNA daily May 5th
CVNA daily June 8th
That previous trade was shorted just below the downtrend line with a suggested stop on a daily close above it (which triggered shortly after entry). As back then, while this is another counter-trend trade (counter-trend trades typically run a higher rate of failure but also offer above-average gain potential), this trade offers an above-average R/R profile with about 73% downside to my current preferred target (T4 at 6.55) and 85% if the current max. target, T5 at 3.66, is hit. As always, pass if this type of aggressive trade does not mesh with your trading style, risk-tolerance, objectives, or outlook on this particular trade.