KMX finds buyers again around 61.28
CarMax Inc (KMX) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KMX ended Monday at 62.00 edging higher $0.28 (0.45%) on low volume. Today's closing price of 62.00 marks the highest close since April 5th. Trading $0.75 higher after the open, Carmax Inc was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. 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 Apr 16, 2018):
Monday's trading range was $1.51 (2.43%), that's slightly below last trading month's daily average range of $1.85. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 62.44, the market closed below it after spiking as high as 62.79 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move lower than 61.08 in the prior session, the share found buyers again around the same price level today at 61.28. After spiking up to 62.79 during the day, the stock found resistance at the 50-day moving average at 62.13.
Although KMX is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
Buying could accelerate should prices move above the close-by swing high at 63.03 where further buy stops might get triggered. Further buying could move prices higher should the market test March's nearby high at 63.55.