AZO closes within previous day's range
AutoZone Inc. (AZO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AZO finished the month 7.03% higher at 1207.42 after losing $2.33 (-0.19%) today, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AZO as at Jul 31, 2020):
Friday's trading range has been $20.36 (1.68%), that's slightly below the last trading month's daily average range of $20.98. 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 higher than usual for AZO.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on July 17th, AZO lost -0.10% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 1152.72.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1230.54 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for AutoZone. Out of 98 times, AZO closed higher 64.29% 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 62.24% with an average market move of 0.69%.