AutoZone Beats Estimates, Remains Below The Quarterly Risky Level

AutoZone, Inc. (AZO), which has beaten the earnings estimates on 26 May, and the stock traded as high as $1 178.19 of the day. This puts the stock between its monthly value level at $1,085.63 and its quarterly risky level at $1,212. 75.

This retailer of aftermarket auto parts and accessories offers spare parts that are generally less expensive than the brand-name products parts available at auto dealerships. The company has expanded its earnings per share (EPS) winning streak to 12 consecutive quarters. The stock has a P/E ratio of 17.88 and does not offer a dividend, according to the trends.

AutoZone shares closed last week at $1,153.93, down 3.1% year to date and 9.5% below its intraday high of $1 274.40 game on Dec. 10, 2019. The stock is also in the bull market territory at 68.5% above its March 23rd low of $684.91.

The daily chart for AutoZone

Refinitiv XENITH

AutoZone had been above a cross of gold since July 19, 2018. This bullish signal occurred when the 50-day simple moving average rose above the 200-day simple moving average, indicating that the increase in prices to come. This buy signal follow-up of the stock to its intraday high of $1 274.40 game on Dec. 10, 2019.

To the downside, the stock has dropped below 50 days simple moving average on Jan. 6. Before this happened, the stock began to 2020 below its annual pivot at$1,211.81. A death of the cross was confirmed on 2 March, when the 50-day simple moving average fell below the 200-day simple moving average. The 200-day simple moving average failed to hold on the 11th of March, which has led to the decline of its March 23rd low of $684.91.

On the V at the bottom, AutoZone stock rose above its 50-day simple moving average on the 17th of April. The semi-pivot at $1,004.05 was a magnet between 17 April and 4 May. The stock moved above its 200-day simple moving average on 18 May. This put the stock above its monthly risky level from June to $1,085.63. The stock is below its annual pivot at$1,211.81.

The weekly chart for AutoZone

Refinitiv XENITH

The weekly chart for AutoZone is positive but overbought, with its five-week modified moving average of $1 073.65. The stock is well above its 200-week simple moving average, or the return to the average, at $831.01. This level was last crossed during the week of April 10, 2020, when the average was $819.77.

The 12 x 3 x 3 weekly slow stochastic reading should increase 81.95 this week, from 76.27, on the 29th of May. Moving above the 80.00 threshold is the overbought reading.

Trading strategy: Buy Autozone stock on the weakness of his monthly and semiannual value levels at $1,085.63 and $1,004.05, respectively, and reduce the holdings on the strength of the annual and quarterly risky levels at 1 211$.81 and $1,212.75, respectively.

How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.

The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of June has been established on the basis of the May 29 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.

My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.

How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.

The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.

The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.


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