The Road To Nowhere:

The used car space has been in the news plenty in recent months, with some stating the vehicles they were buying were worth more than when they drove them off the lot. This of course is the exact opposite of what we know is the depreciation of a car once it has left the showroom. But now it seems like demand is waning as PRICES come in as supply and demand forces come back into play. Looking at the stock charts within there has been some noticeable bifurcation. Names like AN and PAG trade 7 and 9% off their respective 52-week highs, while a KMX is 38% from its own annual peak and it is building the right clavicle of a bullish inverse head and shoulders formation. Look for an entry above the very round par number in the near term, which would carry a measured move to 116. At the other end of the spectrum, we have the chart below of CVNA. It is lower by more than 90% YTD, not a typo, and a break below the very round 20 number suggests this name may be worthless.

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