AZO closes above its opening price after recovering from early selling pressure
AutoZone Inc. (AZO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AZO ended Thursday at 884.99 gaining $40.56 (4.8%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading up to $13.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, AZO gained 11.78% on the following trading day. Closing above Wednesday's high at 884.06, AutoZone confirmed its breakout through the previous session high after trading up to $11.36 above it intraday.
Daily Candlestick Chart (AZO as at Mar 26, 2020):
Thursday's trading range has been $38.39 (4.41%), that's far below the last trading month's daily average range of $74.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AZO.
Prices are trading close to the key technical support level at 840.91 (S1). After having been unable to move above 884.06 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 895.42.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for AutoZone. Out of 477 times, AZO closed higher 54.30% 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 63.10% with an average market move of 0.73%.