At the December lows CAR was down over 55% from the 2018 peak.
Shares posted their best gain(+17%) in years(Feb. 21) following a strong Q4 earnings report.
The stock drifted higher over the next week before entering a narrow consolidation pattern(bull flag). This allowed CAR to work off the extremely high overbought reading it reached in early March. The stock has layers of support now in place highlighted by a 50/200 day moving average bullish cross.
CAR is breaking out as the new week begins. There is plenty of additional fuel in the tank(SIR= 6).
We are now long. A close back below last week’s low will send a clear warning sign that the ongoing breakout has failed.