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Copart, Inc. (NASDAQ: CPRT)

Posted On August 15, 2017 1:14 pm
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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, primarily insurance companies, as well as to banks and financial institutions, charities, car dealerships, municipalities, fleet operators, and vehicle rental companies.

Take a look at the 1-year chart of Copart (NASDAQ: CPRT) below with added notations:

1-year chart of Copart (NASDAQ: CPRT)

CPRT has been in an overall uptrend since last year. However, the stock has recently stalled, as CPRT has hit the same resistance at $32 (red) a few times. Now, the stock is sitting just under that level again. A solid close above the $32 should lead to another leg higher for CPRT.

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The Tale of the Tape: CPRT has a 52-week resistance at $32. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach

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