After Yesterday's Rally of 1.75% Shares Could Potentially Pullback
Carmax (NYSE:KMX) traded in a range yesterday that spanned from a low of $58.55 to a high of $59.81. Yesterday, the shares gained 1.7%, which took the trading range above the 3-day high of $59.65 on volume of 891,000 shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.
Over the past year, Carmax has traded in a range of $41.25 to $73.76 and is now at $59.51, 44% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.0% while the 200-day MA has slid 0.6%.
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 15.5%. We continue to monitor KMX for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
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