Carvana Co (NYSE: CVNA) experienced a significant Power Inflow alert, a key bullish indicator closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.
At 10:08 AM EST on September 25, CVNA triggered a Power Inflow signal at a price of $357.65. Prior to the alert, CVNA had been trading lower on the day, with the price of the stock consistently dropping during opening hour of trading leading up to the Power Inflow alert. At the time of the alert, institutional and retail buying momentum had recently begun increasing, leading to an immediate steady rise in the stock price. This Power Inflow signal is aimed to be a bullish indication of institutional and retail interest, highlighting where traders may be entering the market for the stock.
Understanding the Signal
The Power Inflow appears within the first two hours of the trading day, with the signal reflecting a significant shift in the order flow, indicating there has been a large shift towards buying the stock. This signal is indicating a high likelihood that the stock price will be bullish for the remainder of the day, marking a potential opportune and strategic entry point for active traders.
Order flow analytics analyze real-time buying and selling trends by examining the volume, timing, and order size across both retail and institutional traders. These insights offer a more detailed understanding of price behavior and market sentiment for a stock, allowing the trader or institution to make the most informed decision possible. When used with a focused risk management strategy, order flow analytic tools like the Power Inflow signal can enhance decision-making.
Post-Market Performance
At the time of the Power Inflow, CVNA was priced at $357.65. Following the signal:
• Intraday high: $378.47 (+5.8%)
• Closing price: $371.35 (+3.8%)
Today’s Power Inflow alert on CVNA is a great example of how real-time order flow analytics can reveal bullish momentum, especially during a time a stock seems to be weakening. The strong gains that followed the Power Inflow signal highlight the value of order flow analytics in identifying intraday reversals, offering traders an advantageous buying opportunity.
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
