Carvana Co. (NYSE:CVNA) is consolidating Wednesday. Shares gained more than 5% yesterday after analysts at Jefferies Financial Group Inc. (NYSE:JEF) said the company’s September unit sales were 40% above Wall Street estimates.

As you can see on the chart, the $57 level has been support, and Carvana is getting close to it. Stocks tend to rally after reaching support. This is why Carvana is the Stock of the Day.

‘Markets have memories’ is an old saying. It means an important price level can retain its importance for a long time.

Carvana first found support around $57 in June 2025. A rally followed.

When this happened, many traders and investors who sold at the support decided selling was a mistake. Some also decided to buy their shares back.

But they would only do so if they could eventually buy them back at the price they sold them. When the shares dropped back to $57, these regretful sellers placed buy orders. So many of these orders created support.

Then another rally followed, and a similar thing happened. When Carvana sold off to $57 in March, remorseful sellers placing buy orders created support again.

$57 also held as support in July.

Sometimes stocks rally after reaching support. This happens when some of the buyers who created the support become anxious and impatient.

They know that sellers will go to whoever is willing to pay the highest price. They fear someone else will be willing to pay more.

As a result, they raise their bids. Other anxious buyers see this and do the same thing. This can create a snowball effect that pushes the shares into an uptrend.

If Carvana reaches this key support level, the shares may bottom out again. There is also a chance of a rally following.

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