CARG pops to highest close since February 13th
CarGurus Inc. (CARG) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CARG finished Tuesday at 30.42 gaining $0.44 (1.47%), significantly outperforming the S&P 500 (0.36%). Today's close at 30.42 marks the highest recorded closing price since February 13th. Trading up to $0.32 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, CARG gained 3.77% on the following trading day. Closing above Monday's high at 30.29, CarGurus confirmed its breakout through the previous session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (CARG as at Aug 04, 2020):
Tuesday's trading range has been $0.83 (2.77%), that's 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move above 30.29 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 30.46.
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 although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 26.18.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for CarGurus. Out of 10 times, CARG closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 70.00% with an average market move of -2.42%.