Auto parts retailer AutoZone (AZO) gapped higher in pre-market activity here on Monday on news of a significant earnings and revenue beat for its fiscal fourth quarter. Let's check out how AutoZone's charts and indicators may be affected by the announcement.
In this daily bar chart of AZO, below, we can see a positive trend the past 12 months. Prices are trading in pre-market activity above the cresting 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line has been rising since September and confirms the price gains we have seen. The Moving Average Convergence Divergence (MACD) oscillator is just slightly below the zero line and we could soon see a new buy signal.
In this weekly Japanese candlestick chart of AZO, below, we can see the past three years of bullish price action. Prices are trading above the rising 40-week moving average line. The weekly OBV line is bullish. The MACD oscillator has been above the zero line for a long time but needs to turn upwards again.
In this daily Point and Figure chart of AZO, below, we do not have the pre-market rally to the $2,220 area plotted. This kind of price strength should refresh the uptrend and generate an upside price target.
In this weekly Point and Figure chart of AZO, below, we can see an upside price target in the $2,943 area.
Bottom line strategy: AZO is showing independent price strength and for now it is likely to continue. Aggressive traders could approach AZO from the long side. Risk to $2,090.
