CARG breaks above 50-day moving average for the first time since July 10th
CarGurus Inc. (CARG) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
CARG ended Wednesday at 26.81 surging $1.48 (5.84%), strongly outperforming the S&P 500 (1.24%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on June 10th, CARG actually lost -8.32% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 25.72, the stock confirmed its breakout through the previous session high after trading up to $1.18 above it intraday.
Daily Candlestick Chart (CARG as at Jul 29, 2020):
Wednesday's trading range has been $1.81 (7.12%), that's far above the last trading month's daily average range of $1.14. Weekly volatility is also higher, being slightly 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.
CarGurus managed to close above the 50-day moving average at 25.86 for the first time since July 10th. Prices are trading close to the key technical resistance level at 27.17 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test June's close-by high at 28.60.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for CarGurus. Out of 18 times, CARG closed higher 83.33% 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 eight trading days, showing a win rate of 55.56% with an average market move of 1.61%.