CARMAX ($KMX) 🏎️ | Save Your Marriage Using Only Carmax

NYSE:KMX   CarMax Inc
πŸš— CarMax ( KMX ) slayed it last earnings season. While projections are grim this quarter due to the COVID slowdown, the longterm bull trend of CarMax and its general performance as a company ultimately has us looking for more upside.

Not only does CarMax have a strong presence in the in-person used car economy, but it also has a strong presence in online car sales (which one would think helped it sustain COVID better than others; we'll know when the numbers come out).

Another bullish thing CarMax has going for it is that some smaller used car dealers are having issues getting credit for customers, while bigger players like CarMax don't have this issue.

Given all that we are betting on bullish continuation after finding support, although there is a path for the bears here if this CarMax run turns out to be lemon.

Hit that πŸ‘ button to show support for the content we produce every day and to help us grow 🐣

Our first notable support for KMX is the S1 bullish S/R flip, orderblock, and gap-fill cluster. There is a lot going on here, and all that confluence makes it a logical spot for the bulls to find support.

If the bulls can't hold S1, they will have to be cautious as the bears will have a path to victory in front of them. Both bulls and bears will be looking at the S2 cluster for direction. Does a test of S2 give us a dead cat up to previous support as resistance? Or, can the bulls take the S2 momentum and run with it? We won't know unless we get there, but the bulls should be hoping we never have to find out.

The first resistance for the bulls is the R1 orderblock and gap fill at the prior swing high. The logic here is simple, we are likely to find resistance at the previous top.

Speaking of previous tops, the R2 orderblock cluster at the All-Time High (ATH) is bound to see a reaction if and when we test it. Of course, testing this level is something the bulls are hoping for, and there isn't much for the bears to do if we do.

CarMax has been bullish for about a decade, we aren't rushing to bet against this one, to say the least. Still, a bit more correction before the bulls continue their stampede isn't out of the question. Does S1 hold? Bulls better hope so, because things get a lot less bullish below S1.

Resources: +