Online car retailer Carvana Co (NYSE:CVNA) is up 1.5% to $338.61, trying to bounce back from a 10% quarterly loss after a 66% year-to-date gain. Despite struggles since hitting a record high of $413.35 in July, $320 has held up as support. Bulls are eyeing a key trendline to buy the dip.

CVNA is near its historically bullish 126-day trendline, with a signal that has led to a 75% chance of higher prices one month later, averaging a 15.8% gain in the past. A move similar to past signals could push the stock to $392.11, filling the gap from October.

Short interest in CVNA has dropped 13.3% in recent periods, accounting for 8.8% of the float. With the average trading pace, it would take short sellers over four days to cover their bearish bets, potentially leading to a short squeeze.

Read more at Yahoo Finance: Buy the Dip on Struggling Carvana Stock