The largest used car dealer in the USA, CarMax Inc., currently operates 173 sales branches across the nation in 39 US states. The company specializes in domestic and imported used car makes, and offers repair, financing and insurance services for its customers. CarMax is a member of the Fortune 500 and is listed under the abbreviation “KMX” in the S&P 500 on the NYSE.
From a chart-oriented point of view, the stock is in an attractive place for a mid- to long-term price increase. In this analysis, we will go into more detail on a possible long scenario.
Established upward trend
In the daily chart, we can clearly see the confirmed upward trend. Considering its size, this trend is actually more like one of the more long-term candidates, since even the subordinate trends can already be spotted on the daily chart.
In the last few weeks, the current correction came to an end and formed a subordinate trend in the direction of the movement – in combination with the SMA200, here one can wait for a setback of the prices at the moving average as the support line, to then make an entry.
The stop management occurs via trend trading at the last low, found here at 57.60 USD.
If we take a look at the daily chart after zooming further out, the two attractive targets can be clearly seen. The partial sale zones marked in green are where one should carry out profit takings at the very latest. It is around 12% until the first target at 69 USD; a whole 19% until the second target at 73 USD.
Before making an entry, one should take company news as well as news concerning the overall markets and the activities of the central banks into account. The next corporate figures of CarMax are expected before official trading hours on 21.06.17.
Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.