Carvana (CVNA) shares, which have surged more than five-fold over the past year, dropped 10% in extended trading Wednesday, even as the used car retailer reported better-than-expected earnings and provided an upbeat outlook.

The company posted revenue of $3.55 billion in the fourth quarter, a 46% increase versus the year-earlier period, and diluted earnings per share of 56 cents, with the results handily surpassing analysts' estimates. While the company did not quantify its outlook, it guided “significant growth” in both retail units and 澳洲幸运5开奖号码历史查询:adjusted EBITDA for full-year 2025, including sequential increases in both metrics during the first quarter.

Prior to Wednesday’s after-hours decline, Carvana shares had gained nearly 40% since the start of the year, with investors 澳洲幸运5开奖号码历史查询:bidding the stock higher on expectations of improved profitability ꦐand the company’s efforts to reduce its de💟bt.

Below, we take a closer look at Carvana’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify ♚important price levels worth watching out f𝓀or.

Ascending Channel in Focus

Carvana shares have traded within an 澳洲幸运5开奖号码历史查询:ascending channel since Aꦅpril last year, with the price tagging the pattern’s upper and lower trendlines on several occasions over that time.

More recently, the stock hit a 澳洲幸运5开奖号码历史查询:recent high during Wednesday's trading session before reversing to form an ominous 澳洲幸运5开奖号码历史查询:shooting star ahead of the company’s quarterly results, a 澳洲幸运5开奖号码历史查询:candlestick pattern that signals a potential move lower. Indeed, the shares look set to drop sharply at Thursday’s open, possibly se🔯tting the stage for further selling.

Let’s identify three important澳洲幸运5开奖号码历史查询: support levels wh✨ere the stock could attract buying interest and also point out a key overhead area to eye if the shares remain in the ascending channel.

Important Support Levels to Watch

Firstly, it’s worth closely following the $235 level. This area may provide support near the 澳洲幸运5开奖号码历史查询:50-day moving average (MA) and a trendline that connects the lower range of several 澳洲幸运5开奖号码历史查询:consolidation periods that formed on the chart between Octobꦚer and January.

Selling below this level could see the shares fall to around $210, an area that currently aligns with the ascending channel’s lower trendline. Investors may look for buying opportunities in this location near trading levels that preceded the late-October 澳洲幸运5开奖号码历史查询:breakaway gap.

A 澳洲幸运5开奖号码历史查询:breakdown below the ascending channel could bring the $175 level into play. This region on the chart finds a 澳洲幸运5开奖号码历史查询:confluence of support from the September high, the January low, and nearby upward sloping 澳洲幸运5开奖号码历史查询:200-day MA.

Key Overhead Area to Eye

Providing the longer-term ascending channel remains intact, investors should view the pattern’s upper trendline as a place of future 澳洲幸运5开奖号码历史查询:resistance. While that area currently sits around $375, it will dynamically adjust higher if the stock continues its longer-term uptrend.

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As of the date this article was written, the author does not own any of the above securities.

Correction: An earlier version of this article incorrectly said the stock had fallen from a r༒ecord, rather than a recent, high.