The Reaction to CAVA Earnings Established a Significant Intermediate-Term Low
by Mike Paulenoff
August 16, 2026 • 7:48 AM EDT
Last Tuesday afternoon, hours before CAVA (Cava Group) was scheduled to report Earnings, this is what I posted for MPTrader members:
CAVA reports Earnings after today's close. Approaching the news, CAVA is circling 61, a full 40% beneath its April 2026 high at 98.79, amid an unconfirmed new corrective low at 60.21 yesterday (8/10/26), leaving CAVA positioned for a "buy-the-news" setup (the opposite of a sell-the-news setup in a name that is up 30% to 40% approaching Earnings).
That said, despite the positive anecdotal technical setup after a near 4-month grinding corrective process, if Earnings are seriously "blemished," my pattern work cannot rule out a "final plunge" into the 52-56 target support window, from where I will be expecting a significant pivot reversal low. Conversely, if CAVA jumps right out of the blocks after Earnings, a sustained climb above 65.00 is needed to trigger an initial upside reversal signal... This is a binary situation, yes... 52-56 or 65... last is 60.94...
Fast-forward to Tuesday evening, CAVA reacted extremely positively to better-than-expected Earnings, rocketing from 61 to 70. More impressively, CAVA sustained the initial gains and added 5.65 through the end of the week.
From my initial update Tuesday afternoon (60.94), CAVA gained a very healthy 24% (!), and closed the week at 74.54.
The structure of the upmove from the 8/11/26 multi-month low at 59.50 to Friday's (8/14/26) high at 75.65 exhibits bullish form, and as such, argues very strongly that CAVA has completed a major correction and has commenced a new bull phase.
Needless to say, CAVA's trajectory after a 24% vertical lift-off will likely include a pullback or three in the coming days and weeks.
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