KMX gaps up to new high

٢٢ ديسمبر ٢٠١٤

Overall 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).