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rook2pawn
Oct 14, 2023 7:13 PM

KMX: $73 Go long. Short as it heads into 20DMA Short

CarMax IncNYSE

Description

Fundamentals / Background: This company has financial difficulties and is not well-poised in this environment with depreciating value of inventory, and lots of it, with consumer strength weakining.

Technicals: Currently, Sell. Specific shorts at the 20DMA $72 range with a short add at $68. Additionally if the stock immediately rejects initiate short at break of $67-$68.
Short Stops around $73

This is pretty good short in general until it clears $73. Its fundamentals are still working against the stock, but we will be unbiased.

There is a short term mid-October bull bias if it clears the neckline at $69 or so, but shorts will likely be accumulating here.

Comment

KMX look to reenter short below $60, long if price can sustain +$75 for more than a month
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