Don't Ignore This Chart!

Carmax (KMX) Drives Off The Lot

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Carmax (KMX) has a great technical chart today. With the SCTR soaring to 88, the price action shows it is one of the best stocks out there. But there is a little more history on the SCTR that is important. One of the best parts about the SCTR is we can look at how it performs relative to its peers over time. To my knowledge, this is the only plottable indicator that keeps track of the relative ranking compared to its peers. It was over a year ago that KMX fell out of the top performer range above 75. That makes the stock difficult to hold to me. If it is not a top performer, why hold it through the down period? We can see that today marked a climb back to top performer status after a year. The Relative Strength compared to the $SPX is shown in purple. This is trying to break out to six-month highs. 


The price action broke out through the horizontal support/resistance shown in green. It also broke out to 2016 highs. The volume accelerated on the breakout and the MACD is now at its highest reading since April of 2015. 

Autonation (AN) is testing the breakout level for new 2016 highs as well. This could be a clue for the Auto manufacturers. I covered off the Auto Manufacturer charts as part of the Commodity Countdown Webinar 2016-07-21. Click to watch the archive

Have a good weekend.

Good trading,
Greg Schnell, CMT, MFTA.

 

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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