Lionel13,this is my analysis from a week or tow back, which...

Lionel13,
this is my analysis from a week or tow back, which offers my answer to your Q.

Cheers,

Lautrec.


"Analysis:

Basically, the share re-entered an old support line to test it, as it has been for a couple of months.
Whilever its bounced off that support of around $7-50 it has continued to find a ceiling at around $8-50.

For a few reasons, today the share behaved as though it might trade between both of these levels, $7-50 to $8-50.
And it did so. I figured that if it could go beyond $8-50, i9t may also try and test some 2009 ceiling highs that it couldn't push through. So far, it hasnt pushed through the $8-50 mark, but when it does it will test $8-80, which is another ceiling high from 15/10/2009.

From here, the indicators say to me that:

the new support line will be from around $8-05.
The new (short term) resistance will be high $8s.
These are its historical parameters that it will try to adopt like and old comfortable shoe.
As at 24/2/2010, the share re-found its feet an healthy positive money flows commenced. That has continued unabated ever since and littel money has flowed out, whikle at the same time the share hasnt broken through any old boundaries.
This spells accumulation by some in the know of what has been announced today.
Right now, as you read, the share is settling down to its 180day simple average price. The share is not retracing to old levels into the $7's therefore. You can expect that if nothing intense happened from here, that the share might fluctuate about 2-5% either side of the 180 days simple average price.
I dont think that will happen though.
I feel that an elliot wave will commence as of about now and it will have 3 typical spikes - classic pattern for a good blue-chip that is decoupled from global input, as KAR is as of today.

Factors such as Gas and Oil price will have the price bouncing tomorrow in unison.

Ultimate Oscillator Indicators say that the share has approx 10% further to move before being over-bought (nearly $9).

Momentum levels favour the sellers price, so no cheapies will be on offer when the tree has been shaken and the share might head off for $9 then.

The Parabolic SAR states that the share is entirely Bullish and a recommended BUY, via indicators alone - unemotional, unhuman.

There are no funds buying into the stock yet, but will do tomorrow on the back of a green DOW IMO.
Bascially, over the next 2-3 days, todays news will disseminate and every broker/fund will have the stock at a buy if it goes under about $2-20, its 180-day simple average.

All accounts i am reading say Buy and hold until over $9 minimum, for it could go even higher once more tests are completed and flows are announced with an average monthly figure etc.

Added bonuses - AUD falls
- GAS and/or oil price rise
- flows to remain high and not peter out
- a company reserve rerating by institutions

On the side - a green DOW tomorrow will see it trading towards $8-50 again i feel.
Another announcement will go down a treat with speculators.


Cheers

L"