Used car dealer CarMax ( KMX) was downgraded to "neutral" from "buy" at Bank of America. Let's check out the charts and indicators. In our last review back on December 20 we recommended, "Similar to the technical picture in June, I would avoid the long side of KMX as the company is set to report its earnings. The charts look weak. Avoid the long side." 
In this updated daily bar chart of KMX, below, we can see that prices have been under pressure since early November and a strong low has not developed. Prices trade below the declining 50-day moving average line and below the bearish 200-day line. The trading volume has been more active the past three months but I do not consider it to be "throw in the towel" volume.
The On-Balance-Volume (OBV) line has been weak from early November and shows only a modest recovery in March. The Moving Average Convergence Divergence (MACD) oscillator has recovered but still is far below the zero line.
In this weekly Japanese candlestick chart of KMX, below, we see a bearish picture. Prices are trading below the declining 40-week moving average line. The weekly candles fail to show us a bottom reversal pattern nor even lower shadows to suggest that KMX has reached a level where traders would reject the lows.
The OBV line has diverged bearishly from the price action for months into the late 2021 high. The MACD oscillator is bearish.
In this daily Point and Figure chart of KMX, below, we can see that prices are pointing down and close to making a new low for the move down. A $79 price target is shown.
In this weekly Point and Figure chart of KMX, below, we can see the same $79 price target.
Bottom line strategy: Traders should steer clear of the long side of KMX.
