Carvana Co. (NYSE:CVNA) shares are lower on Thursday. They have been in a downtrend since January. But they may have found support and could even reverse. This is why Carvana is our Stock of the Day.

As you can see on the chart, the $285 level has been important for Carvana.

In February 2025, it was a resistance level. When this resistance broke in May 2025, some of the people who had sold shares at around $285 came to regret doing so. A number of them vowed that, if they could eventually, they would buy back their shares at the same price they were sold for.

So, when Carvana dropped back to $285 in June, they placed buy orders. There were so many of these orders that it created support.

After the stock rallied off support, some people who sold at $285 regretted it. They vowed to buy their shares back at their selling price if they eventually could. When Carvana dropped back to the November level, they placed buy orders, creating support at that level again.

Now, Carvana has fallen back to $285 once more. There is a chance that remorseful sellers placing buy orders could create support again. This could put a floor under the price.

Sometimes stocks rally after reaching support. As you can see on the chart, this happened the last two times for Carvana

Shares rally off support when impatient, anxious buyers start outbidding each other. They know the sellers will go to whoever is willing to pay the highest price, so they increase their bid prices.

Other anxious and impatient buyers see this and do the same. It could trigger a snowball effect that drives the shares into a rally. There is a good chance that Carvana reverses and moves higher.

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