| The technical picture in CVNA is particularly compelling, with price action tightening near significant resistance. What makes this setup special is the decreasing volatility combined with persistent upward pressure - a classic pattern that often precedes substantial moves. EMA Configuration The stacked EMAs on both daily and weekly timeframes tell a powerful story. This orderly arrangement of moving averages creates multiple layers of dynamic support, giving us clear areas to manage risk. When we see this kind of perfect technical alignment, it often signals strong institutional interest. Squeeze Signal Our daily timeframe is showing a squeeze signal, suggesting energy is building beneath the surface. These compression patterns, especially when formed during strong uptrends, often lead to explosive moves. Short Interest Factor CVNA's short interest adds another compelling layer to this opportunity. With 11.6% of its float sold short, CVNA ranks as one of Wall Street's most hated stocks. When we see this level of bearish positioning combined with bullish technical alignment and a squeeze forming near highs, the potential for an explosive move increases significantly. Think of it like a pressure cooker - each uptick in price can force short sellers to cover their positions, potentially creating a snowball effect of buying pressure. This high short interest, coupled with our technical setup, could provide additional fuel for any breakout Fundamental Backdrop While I typically focus on technicals, it's worth noting CVNA's remarkable fundamental shift. The company's operating leverage has surprised many, driving profitability faster than expected. Their ADESA acquisition has strengthened their nationwide reconditioning network, creating significant operational advantages. Key Catalysts - Accelerating profitability trajectory
- Operational efficiency improvements
- Strong market positioning
- Perfect technical alignment
Your Action Plan The current setup in CVNA is exactly what we look for: - Daily squeeze formation
- Stacked EMAs showing trend strength
- Clear technical structure
The S.A.M. AI Scanner caught this setup early, highlighting the squeeze formation and technical alignment before most traders noticed. This is precisely why we developed the scanner - to identify these high-probability setups when they first emerge. Want to catch these setups before they make major moves? Click here to learn how the S.A.M. AI Scanner can transform your trading by identifying powerful technical setups in real-time. | 
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