AutoZone Inc. ( AZO) recently tested the rising 200-day moving average line. This looks like a low-risk buying opportunity in the shares of the auto parts retailer, so let's look at the charts and get some grease under our nails. 
In this daily bar chart of AZO, below, we can see that prices made a high in August and have pulled back to test the rising 200-day moving average line. Notice the heavy trading volume as prices touched the moving average -- traders took notice and acted. AZO has bounced back to the underside of the 50-day moving average line. A close above this line will improve the picture. The On-Balance-Volume (OBV) remained steady as prices corrected from their August peak -- a sign that traders did not become aggressive sellers. The Moving Average Convergence Divergence (MACD) oscillator is pointed up for a cover shorts buy signal.
In this weekly Japanese candlestick chart of AZO, below, we can see the recent test of the rising/cresting 40-week moving average line. A lower shadow can be seen at the average line as traders rejected the lows. The weekly OBV line shows some softness in August and September and that needs to be watched closer. The MACD oscillator is above the zero line but pointed lower in a take profit sell signal.
In this daily Point and Figure chart of AZO, below, we can see a potential upside price target in the $2,339 area.
In this weekly Point and Figure chart of AZO, below, we can see a downside price target in the $1,891 area. A trade at $2,230 is needed to improve this chart.
Bottom line strategy: In the current market environment I cannot rule out another test of the 200-day line. Traders should be near-term cautious and wait for another successful test of the 200-day line. If AZO finds buyers just below or around $2,100 it will be a buying opportunity, in my opinion. Risk to $2.025.
