This Friday CarMax (KMX) will be reporting earnings and Jim Cramer, during his 'Mad Money' program last Friday, said this is a part of the economy he's worried about. He doubted KMX's results will be inspiring. Let's keep that in mind as we look at the charts and indicators.
In this daily bar chart of KMX, below, we can see that prices are poised this afternoon to possibly make a new low close for the move down from September. Prices are below the declining 50-day moving average line and the flat 200-day line.
The daily On-Balance-Volume (OBV) line has been weak since its peak in September and signals more aggressive selling the past three months.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been in a sell mode below the zero line since early October.
In this weekly bar chart of KMX, below, we can see that prices are trading below the flat 40-week moving average line. Chart support around $60 from earlier this year is being tested.
The weekly OBV line has declined the past three months and the weekly MACD oscillator fell below the zero line last month for an outright sell signal on this longer time frame.
In this weekly Point and Figure chart of KMX, below, we can see that a trade at $58.65 will be bearish. A downside price objective of $47.20 is being projected.
Bottom line strategy: The charts and indicators of KMX are in alignment with Cramer's appraisal of the fundamental picture.