Thursday, August 11, 2016

KMX Carmax Daily Chart Negative Divergence

Carmax is set up to drive lower. Price is making new highs but the indicators are negatively diverged so a smack down is likely.  Price is on an island over the last four days above 58 so price may gap back down through the 57.5-58.0 gap creating an island reversal pattern, or, price may simply leak lower and fill the gap. Further support is at 55.0-55.5. Look at the gaps further down (red circles), they look like Swiss cheese and will eventually need filled. Keystone is not in KMX but a short would be attractive especially if price bounces today. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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