AutoNation, Inc. (AN) has been under selling pressure all year and that condition is not likely to stop in the near term. Let's kick the tires a bit and look at the charts and indicators to see if there might be a bottom out there in the future for this stock discussed by Jim Cramer Monday night on Mad Money.
In the daily bar chart of AN, below, we can see that prices are trading below the downward sloping 50-day simple moving average line. AN is also below the bearish 200-day average. A bearish dead cross of these two indicators can be seen back in late April.
The On-Balance-Volume (OBV) line has been in a downtrend since late January and tells us that sellers of AN have been more aggressive than the buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been below the zero line most of the time since February. The MACD oscillator is still bearish.
In the weekly bar chart of AN, below, we can see that prices are below the bearish 40-week moving average line. The weekly OBV shows weakness all year and tells us there has been a lot of liquidation. The weekly MACD is bearish.
In this Point and Figure chart of AN, below, we can see that prices are back to the prior support from 2017. A $40.54 price target is being projected but that does not mean that buyers will show up in that area.
Bottom-line strategy: The price of AN is pointed down and I see no early signs of buying interest or slowing momentum. Better opportunities are likely elsewhere in the marketplace.