Shares of CarMax Inc (NYSE:) are in breakout mode. The stock is trading at new all-time highs as the new month begins. KMX has been trading in a narrow range since the Jan. 19 surge lost steam. After a steep drop the first trading day of April ( reaction) the stock has been steadily improving. We believe Carmax is setting up well for a fresh rally leg.
Current technical setup is very similar to the November/December price action.
Despite remaining near the all time highs KMX is far from overbought(daily MACD=Neutral).
Earnings, which were quite impressive are out of the way.
KMX just received its third ‘buy’ recommendation in a row. (CarMax (KMX) Received its Third Buy in a Row (smarteranalyst.com).
On the downside, a close back below last week’s low ($130) would a more drawn out consolidation is ahead.
Note: We have no position.
You can ready Gary S. Morrow’s original post here.
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