CAVA shares fall 1.8% to $73.33, but a rare technical setup suggests a potential 24% rally to $91.00 by early July.
Cava Group Inc (NYSE:CAVA) declined 1.8% to $73.33, extending its losing streak to four sessions. The stock has struggled since its April peak, with losses in four of the last five weeks, though it remains up 24.2% year-to-date in 2026.
A historically bullish technical signal has emerged, with CAVA trading near a key moving average threshold. This setup has occurred only three times in the past decade, each time resulting in an average 24% gain one month later. A similar rally would push shares to $91.00.
Short interest and put-heavy options positioning suggest pent-up buying pressure. The 13.44 million shares sold short represent 12.24% of float, while the put/call open interest ratio sits at 1.52, higher than 99% of readings over the past year.