0HTQ trade ideas
KMX - Stochastic Divergence Channel Line BounceBuy: 68.22
Target: 69.88 - 72.55 (2.43% - 6.35%)
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TurnaroundThe bullish trend is not over yet and several indicators show signs of a turnaround. The Cloud is supporting a possible bottom.
$kmx bottom of channel turning upwardhigher time frame in uptrend parallel channel with strong momentum bars of support line
mid time frame is breaking out of downward trend line and out of consolidation range-structurally sound
upper bound of value and resistance area is 62.5x
positive momentum rsi and rising positive volume pressure
lower time frame shows price breaking out of triangle with good volume
$KMX getting ready to rally higher. Higher-Lows & Higher-Highs$KMX BotTrigger Trade Update: $KMX saw follow thru today on yet another strong bull bar closing well above yesterdays close. More importantly was that KMX closed above the bullish engulfing bar that it sported back on April 6. That April 6 bar was long with a low of $54.29, high of $58.20, & close of $58 that April 6 day. Since then, over the following 7 days KMX preceded to retrace the move to a retest of the lows in what was a very orderly pullback. This is different than a steep plunge pullback. Just better in terms of the quality of the pullback. KMX bounced of those lows and has now eclipsed the high of April 6's bull bar. This is all very bullish action. In the analysis of "pattern-cultivation" this is the kind of action that tends to ignite a counter trend rally where a whole new wave of interest/buyers comes into the stock. The next important level for KMX to trade above is the $60 area. Consider a close above this level to follow a much stronger rally then you've seen so far. Take notice of what happens when KMX (many stocks in general) start trading above the 21 day exponential moving average. KMX is now above this as well here as we can see on the chart.
$KMX LONG - Buy on strong supportBuying at support level around $55.00. Looking for upside to $60+ in near term.
See The Downside Strong Buy Target On $KMX HereShares of CarMax, Inc (NYSE:KMX) continue to fall as auto sales slide and auto loans hit default rates not seen since the financial collapse in 2008 and 2009. However, for interesting investors, there is a major level of support looming. This entry price will be a strong buy for a swing trade bounce. The price point for investors to buy is $53.00 and is found by connecting the lows of the last year. Nimble investors can buy here and get a quick 10% bounce in a matter of days to a week or two. After the bounce, exit and enjoy your profits.
Investors ready to buy CarMax, Inc at major chart support
TRADE IDEA: KMX APRIL 21ST 50/52.5/60/62.5 IRON CONDORKMX announces earnings on 4/6 before market open, so look to put on a play before tomorrow's New York close to get in on a volatility contraction play (six month implied volatility percentile is around 100, with background implied at 47).
Here's the metrics for this puppy:
Probability of Profit: 50%
Max Profit: $113/contract
Max Loss/BP effect: $137/contract
Break Evens: 51.37/61.13
Theta: 2.90
Delta: .45 (neutral)
Notes: Here, I've gone in a little bit tighter (around 30 delta for the shorts) to bring in a little more credit and am keeping the wings somewhat tight because, well, it's a piece of crap with monthlies only, so I don't want to hang a lot of BP out there if it causes me trouble because I'll have to roll from month to month.
KMX Heading Towards the Bottom of ChannelHeaded down from here. Could be due for a gaint move after hitting the bottom of the channel. If it remains bound in the channel, it should hit bottom (about $52) between April 6 and May 5, then turn upward towards $70+ in June or July.
KMXNotes on chart. Although both opportunities missed (pattern up and reversal some target) there are two more gaps below. Might be one to watch on market weakness.
KMX gaps up to new highOverall KMX is not a great trending stock but has been in a bullish move for many years. So today I would only look for a near-term buy opportunity even though it has been trending well since breaking above the 2013 high ($53.08).
In late October price broke above the 2013 pivot high and this time the move stuck. There was a retest to turn previous resistance into support and since then price has continued to move up. On Friday price gapped up significantly (on the earnings announcement) with higher volume and a bullish bar.
The gap was rather large but all conditions point to a good possibility of price moving higher in the near-term (provided the gap isn't filled).
