Carmax is slamming head first into hidden support. Rainbow Theory is pointing out multiple items that should be noted.
RAINBOW PIVOT ORDERBLOCK SUPPORT
RSI X'S COLOR ROTATION
COLOR CANDLE ROTATION
RUNNER BOT BOTOM SIGNAL
Keep an eye on this setup and let us know what you think!
The PEAD projected a Bullish outlook for $KMX after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 50%.
Price briefly dropped below the uptrend line, just to sharply recover and allow further support to form along the upper trend line in white
Rectangles in green are zones where price moves along the Trend Line
The PEAD projected a Bullish outlook for $KMX after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 66.67%.
KMX looks like it will move lower, probably finding some temporary support at it's 200ma or the first trendine.
Just a wild guess after that, but I wouldn't be surprised if that support fails and it moves lower to the 120 range.
This is my 1hr markup on the 1hr chart with KMX.
I have an entry above 138.55 with an initial take profit at 140..
If price pushes above 140, then I plan on holding back to 143-145.
I like this idea based off the the 200MA bounce(blue line) as well as the Daily Chart sitting at or around a 50% retracement.
Will watching over the next few days.
I spotted a potential Swing Idea on KMX. I'm eyeing 140-145 calls. I haven't determined an expiration date yet, but I'm aiming for next month, maybe even Dec. depending on the contract prices.
I also have a 1hr markup which is showing me a possible bounce coming off the 200MA. WIll this happen anytime soon, that I don't know.
However, I'm liking the pullback to...
The stock is currently trading below it's 50 day MA and the reception of ER on the 30th of September was negative.
We have seen a gap down of -9%, followed by a solid red daily candle.
The spike in volume is also a good indication.
I'm expecting the stock to drift down as big investors adjust their positions / get out.
I think Carmax could actually run past the upper white trendline with how hot the used car market is right now might be worth keeping money in even if it hit PT.
$KMX working on a constructive setup. Believe it needs few more days of tight range trading right under that $137 level. Trapped buyer on wide range selling bars from back in May. Need to absorb that supply (long daily candle wicks red arrows) before it can head higher.
KMX poised to breakout post earnings. Two possible plays on the this one. Either take it early on a pull back to the green box and then hope for a break or wait for the breakout and then take it on a pull back to the green box. I prefer the latter. Stops either way would be the below the green box. Targets would be the fib extensions.
