CARG breaks above 20-day moving average for the first time since July 10th


CarGurus Inc. (CARG) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team

Highlights

CARG breaks above 20-day moving average for the first time since July 10th
CARG fails to close above 50-day moving average
CARG closes higher for the 4th day in a row
CARG pushes through Friday's high

Overview

Moving higher for the 4th day in a row, CARG ended Monday at 25.63 gaining $0.45 (1.79%), strongly outperforming the S&P 500 (0.74%). Closing above Friday's high at 25.27, the market confirmed its breakout through the prior session high after trading up to $0.62 above it intraday.

Daily Candlestick Chart (CARG as at Jul 27, 2020):

Daily technical analysis candlestick chart for CarGurus Inc. (CARG) as at Jul 27, 2020

Monday's trading range has been $0.94 (3.74%), that's below the last trading month's daily average range of $1.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CARG.

One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 7th, CARG actually gained 2.95% on the following trading day.

The share managed to close above the 20-day moving average at 25.48 for the first time since July 10th. After spiking up to 25.89 during the day, CarGurus found resistance at the 50-day moving average at 25.76.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the six 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 54 times, CARG closed higher 59.26% 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 59.26% with an average market move of 2.97%.


Market Conditions for CARG as at Jul 27, 2020

Loading Market Conditions for CARG (CarGurus Inc.)...
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