First of all, CPRT’s – Copart, Inc. - Relative Strength has moved above its 20-day exponential moving average in early February and it’s moving up since then. This simply means that CPRT outperforms our benchmark the SPY.
In addition to the above, we can see in the chart that the stock kept trading above its 20-day exponential moving average for three months, February to April. Then, in early May CPRT moved to a trendless almost horizontal regime that brought the stock below its 20-day exponential moving average and on the lower Bollinger Band.
At that point the bulls decided to take the initiative and pushed price with a big gap and a very bullish candlestick to the upper Bollinger Band and above the blue resistance line.