CARMAX: KMX ONLY ONE OF TWO DEALERSHIPS YET TO BREAK MATASII'S SHORT ENTRY TRIGGER - BUT CLOSING QUICKLY
Business Summary (yahoo Finance)
CarMax Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic and imported vehicles; sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and provides extended protection plans to customers at the time of sale. The company also offers reconditioning and vehicle repair services; and provides financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with other financial institutions. In addition, it sells new vehicles under franchise agreements. As of February 29, 2016, the company operated 158 used car stores in 78 metropolitan markets. The company was founded in 1993 and is based in Richmond, Virginia.
INITIAL KMX CarMax IDEA: February 13th, 2018
KMX long term weekly chart (left) shows a potential double top occurring. A drop down through the weekly (blue) channel that starts in the bottom left of the chart; and a drop below previous lows ($40.00) is needed for confirmation of a top, however the potential exists. IF the market is going to put in a double top then there are potential opportunities for consideration as it makes its way down.
The daily chart (right) gives a closer look at more recent market action. Potential support is nearby: green s/r zone just below current market; breaking down through this offers a potential move to the blue channel support. Note the orange highlights: they are marking a drop below the green s.r zone and a drop below the channel. If we see the channel fail to hold the market, then the next blue s/r zone (previous weekly lows) would be our next level to watch for.... $40.00 area.
If you look back further you can find KMX at around $5 in 2009. There is a potnetial to fall back to those levels, however there are also a few technicals to move through first. IF the market ultimately heads lower, it can be followed from one significant technical to next, each offering a technical trigger consideration, when broken or bounced from.
IF we do not have a double top going on, then breaking above $77.00 (previous T1 & T2 highs) offers a potential trigger consideration. Note as well the next significant technical - blue (weekly) trend line. Both are highlighted with orange and offer different risk considerations.
KMX CHART AS OF CLOSE 12-14-18
Carmax is approaching the MATASII short entry at $60/Share. It is only one two dealerships that have not already broke their MATASII Short entry Trigger level.
MATASII WATCH LIST AVERAGE SHORT GAINS FOR AUTO DEALERSHIPS = 24.38%