KMX closes within previous day's range after lackluster session
CarMax Inc (KMX) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KMX ended Wednesday at 100.36 gaining $1.00 (1.01%), slightly outperforming the S&P 500 (0.64%). Today's close at 100.36 marks the highest recorded closing price since February 21st. Trading up to $0.85 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 Monday, KMX gained 2.01% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KMX as at Aug 05, 2020):
Wednesday's trading range has been $1.66 (1.66%), that's below the last trading month's daily average range of $2.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KMX.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 103.18, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CarMax. Out of 139 times, KMX closed higher 51.80% 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 58.99% with an average market move of 1.24%.