by Shane Ormond
On Feb 20, 2020
Shares of Groupon and Blue Apron tanked yesterday after their quarterly reports reignited skepticism about the companies’ “unconventional” business models. (And by “unconventional” I mean “doesn’t work.”)
Blue apron, groupon, e-trade, morgan Stanley
Blue apron, groupon
Yesterday, we looked at a Daily Price Chart of BMC Stock Holdings, Inc. and noted that it was on a pullback from being overbought.
Today’s chart is for Copart, Inc. (NYSE: CPRT).
Copart, Inc. provides online auctions and vehicle remarketing services. It offers a range of services for processing and selling vehicles over the Internet through its Virtual Bidding Third Generation Internet auction-style sales technology to vehicle sellers, insurance companies, banks and finance companies, charities, and fleet operators and dealers, as well as for individual owners.
Now, the Daily Price Chart below shows that CPRT has been making a series of 52-Week Highs since May 2019.
Plain and simple… a stock just doesn’t hit a new 52-Week High unless it is in a very powerful up trend.
And because there are always price retracements during a stock’s uptrend, that’s what we watch for.
CPRT experienced periodic price pullbacks during its strong advance since May.
Traders can get a lower risk entry point after a 3 to 5% price retracement as the stock normally resumes its price up trend after such retracements.
We’ll be sure to continue following Copart, Inc. as it climbs to new heights, and watching for price retracements.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On December 3rd, we highlighted SPDR S&P Semiconductor ETF (NYSE: XSD), noting that XSD had been trading in a bullish trend since June.
If you happened to have purchased XSD shares on that day, you’d already be up 10.22%.
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Editor, Chart Of The Day