CAVA (NYSE: CAVA) stock price has caught the attention of all stock traders. It is considered one of the most successful IPOs of this year, as the stock price almost doubled on its debut. After a brief pullback, the stock is once again trending upwards.
On Tuesday, the US stocks showed increased volatility as the traders speculated on the upcoming release of the June CPI report. The benchmark indices closed in green, showing a positive sentiment in the markets. CAVA stock also closed the day with a 3.3% gain after a very volatile price action.
In the recently concluded CAVA IPO, 14 million shares were priced at $22 each as the restaurant chain aimed to raise $318 million. The stock surged right after its listing and almost doubled on its very first trading session. This attracted many more investors who bought the dip as the stock slid in the following days.
According to the latest news, the investment giant T. Rowe has acquired an 11% stake in CAVA. At the current price, the investment was worth $557.5 million. While many Wall Street analysts like JPMorgan and Jefferies remain bullish on the CAVA stock price, Morgan Stanely and Citi are still taking a cautious approach.
NYSE: CAVA is already trading more than 100% above its IPO price. The following chart shows that there is a supply zone between the $45.5-$48 range. This region is acting as a resistance as it has resulted in a rejection twice in the last four weeks.
A clear break above $50 could make CAVA stock price prediction very bullish. However, it may not be a good idea to chase the hype as the stock is already trading well above its IPO price. Many early investors could be taking profits at these prices. Another reason why I’m not a fan of trading recently listed stocks is because very little price history is available.
In the meantime, I’ll keep sharing updated CAVA forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 12, 2023, 11:41 BST 11:41