KMX closes above its opening price after recovering from early selling pressure
CarMax Inc (KMX) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KMX ended the week 33.11% higher at 58.93 after losing $1.99 (-3.27%) today, but still slightly outperforming the S&P 500 (-3.37%). Trading up to $4.32 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (KMX as at Mar 27, 2020):
Friday's trading range has been $5.83 (10.09%), that's slightly below the last trading month's daily average range of $6.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KMX.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Hikkake Pattern showed up on March 11th, KMX actually lost -10.94% on the following trading day.
Prices are trading close to the key technical support level at 52.37 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for CarMax. Out of 119 times, KMX closed higher 50.42% 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 58.82% with an average market move of 0.89%.