CARG closes higher for the 4th day in a row
CarGurus Inc. (CARG) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CARG ended Monday at 29.98 gaining $1.09 (3.77%), significantly outperforming the S&P 500 (0.72%). Today's close at 29.98 marks the highest recorded closing price since February 13th.
Daily Candlestick Chart (CARG as at Aug 03, 2020):
Monday's trading range has been $1.13 (3.86%), that's slightly below the last trading month's daily average range of $1.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher 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 July 31st, CARG gained 3.77% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 25.99.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for CarGurus. Out of 27 times, CARG closed higher 55.56% of the time on the next trading day after the market condition occurred.