Carvana Co. (NYSE:CVNA) stock is falling on Thursday in a move that appears to stem from a combination of broader market pressure and profit taking following a rally earlier in the week.

The weakness comes as the overall market faces headwinds, with the Nasdaq down 0.12% and the S&P 500 down 0.19%. The Consumer Discretionary sector is also in the red with a 0.4% decline, keeping pressure on the group.

• Carvana shares are under pressure. Why are CVNA shares declining?

Bond Market Pressure

Pressure on equities intensified as U.S. bonds resumed their sell-off on Thursday. Investors continue to expect the Federal Reserve to raise interest rates further to control inflation and strong economic growth. The 10-year Treasury note yield rose for a fourth straight session to 5.33%, hitting its highest point since early 2002.

Over a broader horizon, Consumer Discretionary is down 5.38% over the past 30 days and down 8.12% over the past 90 days. As a result, individual stocks losing support levels face sharper declines as investors remain selective.

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Recent Catalyst

Earlier in the week, Carvana stock traded higher in sympathy with CarMax Inc. (NYSE:KMX) after CarMax reported better-than-expected second-quarter financial results.

Additionally, Oppenheimer maintained an Outperform rating on Carvana on Wednesday while adjusting its price forecast to $90 to account for a 5-for-1 stock split.

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Technical Analysis

From a trend perspective, the stock is still in a bearish posture: it’s trading 10.7% below the 20-day SMA ($67.10) and 16.8% below the 200-day SMA ($72.06), which tells you rallies have recently been sold off before they can turn into sustained uptrends. The 20-day SMA is below the 50-day SMA (bearish), and the Death Cross that formed in March (50-day below 200-day) keeps the longer-term trend bias pointed lower.

The nearby levels traders tend to anchor to are tight: a break below support can invite another leg down toward the 52-week low area, while a rebound needs to clear overhead supply before the chart looks healthier again.

  • Key Resistance: $71 — Round-number area near the 50-day/100-day zone where rebounds can stall.
  • Key Support: $56.50 — Nearby floor close to the lower end of the 52-week range where buyers have previously stepped in.

CVNA Stock Price Activity: Carvana shares were down 1.30% at $61.73 at the time of publication on Thursday, according to Benzinga Pro data.

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Photo: Charles-McClintock Wilson / Shutterstock