KMX in bullish channel
From mid-April till early June KMX – Carmax Inc. – traded in a narrow channel between roughly 75 and 79.5 – see the blue box.
At that point KMX moved up and it is currently moving in a bullish channel between its 10-day exponential moving average and the upper Bollinger Band. Both the 20- and the 50-day exponential moving averages are also moving up below the 10-day exponential moving average.
Our momentum indicator, MACD, has already depicted this momentum buildup and has moved above its signal line.
Just as important, KMX’s Relative Strength has been moving up and above its 20-day exponential moving average since late March.