AZO trade ideas
AutoZone Attempts a Hammer Near Key LevelsAuto-part retailers have been one of the stronger parts of the brick-and-mortar universe during the pandemic. (People are owning cars longer than ever and performing more do-it-yourself work.)
AZO showed that trend on Tuesday morning with a double-beat on earnings and revenue. It tried to open higher but lost a tug-of-war with bearish short-term momentum. Sellers drove the stock all the way down toward levels it last saw in mid-July. It’s also near its 200-day simple moving average (SMA).
Today’s price action is also showing signs of a hammer candlestick. That could indicate a near-term bottom is in view. Combined with the other recent lows, traders may view this as the bottom of the range.
AZO may need a little more time to consolidated after its recent sharp drop. But this could be an area where buyers step in, potentially looking for the next big push.
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AZO may run up to earningsIn my opinion, AutoZone is overvalued and the company's balance sheet is problematic. (Current liabilities are greater than current assets, giving the stock a negative book value per share.) However, the book value is bad partly because management has opted to buy back shares rather than pay debts, which is good for share holders and for the stock price even if not for the financial health of the company. Also, the odds look good for Autozone to report strong results and to deliver strong guidance on its upcoming earnings date. In August, the price of used cars rose 5.4% on the CPI report, and parts were one of the fastest growing categories on the PPI report. We're headed into a recession economy, where people will buy used cars and fix them rather than buying new. That should be great for parts retailers like Autozone.
V Bottom Earnings 9-22Sell off today. But not just for AZO. I think most of the market is red. Long at long entry level
I will be glad when the elctions are over. Until then..I plan to lay low
No rising wedges noted. I guess someone just decided this was too expensive at it's current price..or this ship is just going down with the rest of the boats. I am thinking someone will throw them a life jacket eventually..or maybe even a vaccine!
Good luck
Hard to buy when ships are sinking and portfolios are drowning
Just an observation/Not a recommendation
AZO High and Tight with back to back inside daysAZO looks like its ready for a breakout of the 1180 level. The tight price action and the 2 back to back inside days tell me a move is
about to happen. Entry as it breaks through 1180 on increased volume.
AZOStalling at 1.618 resistance & 20/50 week sma. If it loses the 5 week sma this week I think it heads back down to $815.
Market getting toppy? Lots of bearish signalsI primarily use TDAmeritrade's thinkorswim platform to trade and I am starting to notice that their intraday data integrity is far better than Tradingview. I use thinkorswim to generate my morning alerts for "spikes" and the bars in the platform are very different from TV. Regardless, the number of alerts this morning gives me a hint that the market is getting a bit toppy today. I had 2 Limit order profits hit and closed 2 other bullish trades manually. I went short AZO and ALL on signals. Here is this morning's list for posterity. This many data points should yield some statistics on the signal.
AGN
ALL
AMGN
ANTM
AZO
BDX
BMY
BR
CDNS
CPB
KMX
CME
CMCSA
GLW
DHR
DRI
XRAY
ETR
FE
FCX
AJG
JKHY
HLT
INTU
IQV
LVS
LYV
MKTX
MMC
MDLZ
MCO
MOS
MSCI
NDAQ
PFE
PPG
PGR
DGX
ROST
CRM
SRE
NOW
STE
SYK
TMO
TRV
VRSK
DIS
XRX
ZBH
Don't forget what was working BEFORE the pandemic $AZODriven by DIY and the explosion of Youtube how to videos on everything regarding car repair and upgrades from simply changing an air filter to removing and tearing down an engine block. When you need a car part NOW, autozone is the go to place for most. This is one area that CAN NOT be disrupted by $AMZN. This company was clicking on all cylinders pre-pandemic. It's $5b+ debt may seem eye popping at first, but then you look at it's EBIT which is at 12.1x int. expenses and your eyes should quickly resurface back into your their sockets. The debt load is light and manageable. AZO will easily take its ATH in the near future.
AZO - Setting Up for the Next LegWhile others will publish just about anything to keep their click count and reputation up while first BEGGING you to LIKE their post PRIOR to even READING it, I ask you to first read my idea and THEN decide whether to contact me with questions or like my post. I'm here to help you find opportunities for trades and investments - not to beg you to raise my reputation. Now to the idea:
AUTOZONE's supply chain may be severely impacted due to disruption in foreign countries' production capability. However, if we are actually going into recession AZO is poised to do well as new vehicle sales will slow and people would be inclined to repair their vehicles at home; AZO is a clear beneficiary. I do think we need a strong close above 800 to begin accumulating a position but FAVOR a decline to the rising trend line detailed on the chart above. I'll update when I take a position.
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AZO Credit SpreadSince IV is extremely high on AZO I put a credit spread on 1.52 credit collected
1270/1280
0.11/0.09 EXP Jan 17
Looks good I just wanna collect $75 out of this 50% of the spread credit. Low risk trade + earnings makes it somewhat more risky.
Max loss will be $200 if it turns against me somehow blasts off to the moon.
AZOSystem T Performances: Annual Compound Profit 40%, Win Rate 55%, Risk/Reward Ratio 1:2, 20 Years of Backtesting Data, Over 100 Markets.
* Click Like and Follow to Support My Work!
---
Hi Traders,
I'd like to introduce the System T, a computerized trading system that analyzed and backtested the 20 years history data of over 100 markets.
This post is my sharing of how I think about systematic trading and the signals generated by the System T.
(This is my opinion only, NOT the financial advice.)
I think that for the system to open a trade and manage risk, it only needs a buy signal & a stop-loss signal clearly on the chart.
Once the system finds a good trend, it will ride it as long as possible. The stop-loss will be adjusted accordingly to the new price movement.
(Remember to follow this trade idea and follow my profile to get updates about the stop-loss adjustment and sell signal based on the latest price and market conditions daily.)
System T performances above will give you an idea of how it performs in the last 20 years.
Notice that this result was achieved only if I strictly followed the rule: "Only and Always Buy & Sell based on the System Signals".
Don't sell when there is no sell signal as we all want to follow the good trends til the end like everything in life does. \(^-^)/
Also, my system is extremely diversified through over 100 markets so that it only risks less than -1% of the total capital per trade.
Thank you and good luck!
---
DISCLAIMER:
I am NOT a financial advisor, and nothing I say is meant to be a recommendation to buy or sell any financial instrument.
My views are general in nature and I am not giving financial advice. You should not take my opinion as financial advice. This is my opinion only.
Do your own due diligence, and take 100% responsibility for your financial decisions.
Trading and investing are risky! Don't invest money you can't afford to lose, because many traders and investors lose money. There are no guarantees or certainties in trading.
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AZO triple top and lots of indicatorsSHORT - AZO
SL: 1193.13 (Suggested by our algorithmic system)
TP: 1123.62 (Suggested by our algorithmic system)
Reasons behind this idea:
1. Tested resistance level 3 times and failed to break through
2. Volume indicators suggest that AZO is in a distribution phase or in the supply zone
3. RSI, MACD, Stochastic indicators showing some bearish divergence
---------- Chart Drawings ----------
Blue Solid Line: Support Trendline
Red Solid Line: Resistance Trendline
Red Rectangle Box: Resistance Level
Blue Rectangle Box: Support Level
Purple Vertical Line: Suggested Stoploss by our algorithmic system
Green Vertical Line: Suggested Stoploss by our algorithmic system
Trade idea from our mobile app: ibb.co (Timestamp is in Australian Sydney Time UTC+7)
Please trade responsibly and good luck!
AZO Short on Descending Triangle [Entry attempt #2]Pros:
- Both FI and MACD Histogram ticking lower when price is going high.
- RSI overbought.
- Double hanging man represents weak buyer pressure around 1167.
- Profit target 2R for now since it is counter trend trade. (Will adjust profit target accordingly depending on how it turns out the next few days)
Cons:
- EMAs are still pointing upwards.
- Counter trend trading
Conclusion
- The divergance of both MACD and FI holds more weight in my opinion. May be wrong but we'll learn as we go. My first time executing a counter trend trade.
AZO Short on Descending TrianglePros:
- Both FI and MACD Histogram ticking lower when price is going high.
- RSI overbought.
- Double hanging man represents weak buyer pressure around 1167.
- Profit target 2R for now since it is counter trend trade. (Will adjust profit target accordingly depending on how it turns out the next few days)
Cons:
- EMAs are still pointing upwards.
- Counter trend trading
Conclusion
- The divergance of both MACD and FI holds more weight in my opinion. May be wrong but we'll learn as we go. My first time executing a counter trend trade.
Autozone tipped for recovery to old highs AutoZone initiated at Raymond James AutoZone resumed with an Outperform at Raymond James. Raymond James analyst Matthew McClintock resumed coverage of AutoZone with an Outperform rating and a price target of $1,250. The analyst believes that the company can grow its earnings by over 10% per year for the "investable future" and also boost its revenue by mid-single-digit. McClintock adds that while AutoZone's gross margin may be flat or turn slightly lower, he believes that the company has "meaningful opportunities" for SG&A expense leverage.
Source thefly.com
P/e ratio 16.70
Average analysts price target $1194 Overweight
Company profile
AutoZone, Inc. engages in the provision of retail and distribution of automotive replacement parts and accessories. It operates through the Auto Parts Locations and Other segments. The Auto Parts Locations segment provides automotive parts and accessories through the company's stores in the U.S., Puerto Rico, Mexico, and Brazil. The Other segment consists of ALLDATA, which produces, sells, and maintains diagnostic and repair information software used in the automotive repair industry. The company was founded by Joseph R. Hyde, III on July 4, 1979 and is headquartered in Memphis, TN.
Is it time for a more meaningful pull back for AZO?With a sharp sell off on more than double the average volume as well as coming off a double top and momentum and strength coming out of the stock, AZO maybe in for a reversal and a more meaningful retracement. However at the moment AZO is sitting on plenty of support I would need confirmation of a break in support to put on a short position. If that happens all of my edge is in place and my first downside target would be around 985 the next support level. After that a 50% retracement from the highs or down to the longer trendline become more probable
Time To Change The OilAZO Has the appearance of having completed its leg up, and still has room to move downward toward 888 area in my opinion. Below are multiple timeframe looks at possibilities of this look like. Weekly chart would appear to be presenting AZO in a possible first wave in a longer term view. On the daily, printed a big fat huge bearish engulfing candle last Friday. Sww attached image. Pretty self explanatory after that. Happy hunting and GLTA!! commodity.com
Autozone short-term rebound setupAutozone has been in a downward slide, but we have two support levels coming up that could push it upward through its trendline for a short-term rebound. A break through that downward trendline is the buy signal. Autozone has excellent analyst ratings and a long-term uptrend.
AZO - Upward channel breakdown short setup AZO is long term upward channel breakdown short setup. Look for a break below 1087.47.Target 996.85, Stop 1138.65. Could consider September 1080 Puts (currently $33.70)
