CarMax, Inc. : Buying signal above USD 40.1
March 05, 2013 at 10:02 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
$39.41 |
$42 |
$39.3 |
+6.57% |
---|
CarMax could exceed the symbolic threshold of USD 40.1.
Regarding the fundamentals, firstly, we note the increase of sales recorded over the previous year. Moreover, the growth potential of the revenue for the next 3 years offers an another argument.
Technically, the share has a bullish configuration on all time scales. Prices are supported by increasing moving averages as shown by the 20-period, in weekly data, and the 50-day. The short term support of USD 38.2 gives credit to a technical rebound towards new high levels.
Investors could take a buy position once prices will be above the 40.1 resistance in order to target USD 42. A stop loss will be positioned under USD 40.1.
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