CARG pushes through key technical resistance level
CarGurus Inc. (CARG) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CARG ended Thursday at 27.93 surging $1.12 (4.18%), significantly outperforming the S&P 500 (-0.38%). Today's close at 27.93 marks the highest recorded closing price since June 3rd. Closing above Wednesday's high at 26.90, the stock confirmed its breakout through the prior session high after trading up to $1.27 above it intraday.
Daily Candlestick Chart (CARG as at Jul 30, 2020):
Thursday's trading range has been $2.27 (8.59%), that's far above the last trading month's daily average range of $1.20. Weekly volatility is also higher, being 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.
Buyers managed to take out the key technical resistance level at 27.24 (now S1), which is likely to act as support going forward. The last time this happened on Monday, CARG actually lost -1.17% on the following trading day.
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 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 55 times, CARG closed higher 58.18% 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 58.18% with an average market move of 2.97%.