• Return to Headlines

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

By James Quinn

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 $59.71 and $60.41 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.

There is potential upside of 19.7% for shares of Carmax based on a current price of $60.31 and an average consensus analyst price target of $72.21. Carmax shares have support at the 200-day moving average (MA) of $54.58 and additional support at the 50-day MA of $51.18.

Over the past year, Carmax has traded in a range of $41.25 to $73.76 and is now at $60.31, 46% above that low. The 200-day and 50-day moving averages have moved 0.6% lower and 0.95% higher over the past week, respectively.

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.

SmarTrend recommended that subscribers consider buying shares of Carmax on July 7th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $50.54. Since that recommendation, shares of Carmax have risen 19.7%. 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