Americas Car Mart Testing Multi-Year Demand Zone (Buy Zone)
Atualizado
Hi guys!
This is a MACRO Analysis on AMericas Car Mart (CRMT). Macro meaning larger timeframe aka the 2 week in this instance.
Macro moves tend to speak louder than smaller timeframes like the 1 day for example when they start to move in price.
I believe CRMT has come to an important area and poses a great trade setup in my opinion.
If we look to Price action.
Notice 2 Support trendlines outlined. These are MULTI Year Support zones.
When price reached the trendlines, we ended up bouncing UP.
Notice our current price indicated by Orange box.
Our 2 support trendlines have converged. When 2 support trendlines meet it strengthens the Support.
Also notice the 21 EMA (Purple moving average) -> We have been below this since Septemberish of 2023. Moves below 21 EMA especially on the 2 week pose for good Buy zones as well.
So the combination of converging Support lines and being below 21 EMA = Good area to take positions
Now notice the 2 indicators ive included. These are momentum indicators.
STOCH RSI has crossed BULLISH. (where blue line moves above orange line)
Momentum can pick up and start a move up once this crosses ABOVE the 20 lvl.
MACD is currently below the 0 lvl. With the histogram bars changing from dark red to light red. This indicates a waning of bearish momentum. It is also attempting to create a higher low. All good signs. Look for a Bullish cross and green bars to show up. That will help drive prices up.
A cross ABOVE 0 lvl would bring about massive moves up.
Continue to monitor the indicators and price to stay above the Support zone indicated.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on CRMT in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
This is a MACRO Analysis on AMericas Car Mart (CRMT). Macro meaning larger timeframe aka the 2 week in this instance.
Macro moves tend to speak louder than smaller timeframes like the 1 day for example when they start to move in price.
I believe CRMT has come to an important area and poses a great trade setup in my opinion.
If we look to Price action.
Notice 2 Support trendlines outlined. These are MULTI Year Support zones.
When price reached the trendlines, we ended up bouncing UP.
Notice our current price indicated by Orange box.
Our 2 support trendlines have converged. When 2 support trendlines meet it strengthens the Support.
Also notice the 21 EMA (Purple moving average) -> We have been below this since Septemberish of 2023. Moves below 21 EMA especially on the 2 week pose for good Buy zones as well.
So the combination of converging Support lines and being below 21 EMA = Good area to take positions
Now notice the 2 indicators ive included. These are momentum indicators.
STOCH RSI has crossed BULLISH. (where blue line moves above orange line)
Momentum can pick up and start a move up once this crosses ABOVE the 20 lvl.
MACD is currently below the 0 lvl. With the histogram bars changing from dark red to light red. This indicates a waning of bearish momentum. It is also attempting to create a higher low. All good signs. Look for a Bullish cross and green bars to show up. That will help drive prices up.
A cross ABOVE 0 lvl would bring about massive moves up.
Continue to monitor the indicators and price to stay above the Support zone indicated.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on CRMT in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Nota
Update for CRMT. This is on the 1 day timeframe.
But a key thing to watch is the Multi month resistance trendline that has supressed prices since July 2023.
Our current move seems to be heading towards the trendline.
It is Major Resistance. So we need to see how we react there. If we can get ABOVE, that would indicate a trend change.
If CONFIRMED breakout this would be indication to add positions.
However it is also possible we get rejected. Look to our current SUPPORT ZONE for support.
Keep observing, patience is key to the best buys and sells. Lets keep at it.
Nota
To add to the previous update on 1 day.
NOte that Before any big moves towards our 2 week multi month resistance trendline. We need to pass some intermediate resistance.
This resistance trendline extends from summer of 2023. We are currently in the process of testing it as Support.
At the same time we are also testing support on the upper border of the small orange rectangle which signifies short term consolidation.
It is absolutely necessary for confirmation. Without it, we risk a fakeout and back below resistance. With a potential for heading lower.
Nota
QUICK UPDATE. We are still consolidating within the zone. Nothing of significance until we either break to upside or downside.
Nota
Update: Warning that we were rejected by resistance trendline and price action is back below.
However we are still in consolidation mode.
Just note: STOCH RSI has crossed bearish, with the chance of bearish momentum coming in for possible price declines.
Important to pay attention. Watch for lower border of consolidation zone and the major support lvls below to maintain support.
Nota
We are at a critical area.
Currently attempting to test Support on Resistance trendline.
But below a Key Support trendline
If we CONFIRM BELOW.
There is Risk of further downside.
We must absolutely stay ABOVE Support trendline.
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