The USD 56.75 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

According to Surperformance© ratings, the company constitutes an opportunity for a trading strategy. Indeed, it usually posts better-than-expected financial statements as in 2014 and and the enterprise valuation conciliates with its visibility.

After several weeks of horizontal fluctuations within the mid-term range USD 56.8/63.5, the stock is coming back close to the lower limit of the range.
Moving averages are downward oriented and technical indicators illustrate the oversold situation. The USD 56.75 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 60 mid-term resistance and then the long-term target price is USD 63.5.

So as to make the most of a potential technical rebound of CarMax, it seems opportune to open a long position at the current price. A confirmation of this pattern would enable the security to reach the USD 63.5 resistance, with a potential gain of 11%. Investors should not insist under USD 56.75 and are better of placing a stop loss order under this threshold.