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Possible Bearish Inside Day Candle Pattern Detected for Carmax (NYSE:KMX)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Carmax (NYSE:KMX) based on the price action in the company's shares. Today's price range of $51.49 and $52.22 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Carmax may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

CarMax, Inc. sells at retail new and used cars and light trucks. The Company purchases, reconditions, and sells new and used vehicles in its superstores and franchises throughout the United States.

Potential upside of 39.6% exists for Carmax, based on a current level of $51.74 and analysts' average consensus price target of $72.21. The stock should hit resistance at its 200-day moving average (MA) of $54.58, as well as support at its 50-day MA of $51.18.

Carmax share prices have moved between a 52-week high of $73.76 and a 52-week low of $41.25 and are now trading 25% above that low price at $51.74 per share. Over the past week, the 200-day moving average (MA) has gone down 0.6% while the 50-day MA has advanced 1.0%.

SmarTrend recommended that subscribers consider buying shares of Carmax on February 17th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $47.81. Since that recommendation, shares of Carmax have risen 9.8%. We continue to monitor KMX for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle CarMax

Ticker(s): KMX