AZO pushes through Wednesday's high
AutoZone Inc. (AZO) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
AZO finished Thursday at 1082.52 gaining $15.73 (1.47%), significantly outperforming the S&P 500 (-0.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1077.00, the share confirmed its breakout through the prior session high after trading up to $8.85 above it intraday.
Daily Candlestick Chart (AZO as at Feb 20, 2020):
Thursday's trading range has been $20.36 (1.91%), that's slightly above the last trading month's daily average range of $19.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AZO.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
AutoZone managed to close above the 20-day moving average at 1078.80 for the first time since January 23rd. The market found buyers again today around 1065.49 for the third trading day in a row after having found demand at 1066.06 in the previous session and at 1066.36 two days ago. The last time this happened on October 1, 2019, AZO actually lost -2.84% on the following trading day.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for AutoZone. Out of 286 times, AZO closed higher 54.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.59% with an average market move of 0.94%.