CARG pushes through key technical resistance level
CarGurus Inc. (CARG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CARG finished the month -2.42% lower at 25.35 after gaining $0.85 (3.47%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 24.69, the stock confirmed its breakout through the prior session high after trading up to $0.82 above it intraday.
Daily Candlestick Chart (CARG as at Jun 30, 2020):
Tuesday's trading range has been $1.24 (5.1%), that's slightly below the last trading month's daily average range of $1.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CARG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 23rd, CARG actually lost -5.86% on the following trading day.
Buyers managed to take out the key technical resistance level at 24.70 (now S1), which is likely to act as support going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for CarGurus. Out of 52 times, CARG closed higher 59.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.54% with an average market move of 3.29%.