Looks like $AZO is still In The Zone – February 9, 2023
AZO
This is Scott with your Chart of the Day. A down day on the SPY ( NYSEARCA: SPY ). You can see how we made a lower low and had a bearish engulfing candlestick coming on just higher than average volume. So it was kind of a nothing day for the most part. But I like using days like today to search for relative strength in the market, and we do have that in Autozone ( NYSE: AZO ).
Autozone ( NYSE: AZO ) is up on a down day in the market; pretty interesting relative strength. This is definitely a chart I want to keep track of. They do have earnings coming up near the end of the month, so FYI on that. You can draw some pretty resistance levels on this chart right there, right around that 2,500.00 level, and some pretty clear support zones right around 2,370.00.
And so I want to see what happens with this stock. Ideally, we get a breakthrough of 2,500.00 coming on higher than average volume. Now, I will say that is a bit extended above the 50-day and the 8-day exponential period moving average.
I think a better entry is probably closer to the moving averages because as the market pulls back or consolidates typically it is not great to buy things that are extended. This is one that I definitely want to keep track of, but maybe not chase unless it is for a short-term trade if we do get a break from that $2,500.00 level.
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