CarMax continues its bullish trend in order to test new highest level.

The company’s fundamentals are still strong. Sales are expected to increase by +11% this year. Moreover, analysts from Thomson Reuters consensus have revised largely upward their EPS estimates over the last months (from USD 2.74 in decembre to USD 3.08 now).

Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach the USD 74.75 long term resistance after a slight decline of the stock.

In consequence, investors can take a long position in CarMax with a first target price at USD 74.75. This level is the long term resistance. A new bullish fluctuation could lead the security toward new highest level in case of breakout of this resistance. A stop loss will be set under the short term support at USD 69.8.