CarGurus has been consolidating and seeing a reduction of volatility after the massive jump on February 25th. A Go Countertrend correction red arrow appeared shortly after the high suggesting that in the short term prices would struggle. Since then, we see support found at a horizontal level which has been resistance for the last few months. The concept of polarity states that what was once resistance could become support.
This reduced volatility has caused the GoNoGo Oscillator to ride the zero line for an extended period which in turn has caused the climbing grid of GoNoGo Squeeze to rise to its extreme and stay elevated. We will look for the oscillator to break out of the Squeeze into positive territory which would trigger a Go Trend Continuation green circle to appear under the price bar suggesting that momentum is back on the side of the “Go” trend. That being the case, we could look for price to set a new high. If GoNoGo Oscillator breaks out of the Squeeze into negative territory that would be a cause for concern for the “Go” trend.
