Technical Analysis

Technical Analysis of AutoZone (AZO) Stock

Current Price and Trend:

AutoZone (AZO) is currently trading at $3,618 as of the latest data. The stock has shown a bullish trend, with recent highs of $3,636.96 and lows of $3,549.80, indicating moderate volatility but an overall upward trajectory.

Key Technical Indicators:

• Relative Strength Index (RSI):

  • RSI_6: 81.82 (Overbought range, suggesting potential pullback)
  • RSI_14: 70.52 (Above 70, indicating strong momentum but not extreme overbought conditions)

• MACD:

  • MACD Line: 55.47 (Positive, indicating bullish momentum)
  • MACD Histogram: 16.01 (Positive, showing strengthening upward momentum)

• Stochastic Oscillator:

  • %K: 95.05 (Overbought territory, signaling potential reversal)
  • %D: 84.15 (Also in overbought territory)

• Fibonacci Levels:

  • Pivot: $3,500.10
  • Resistance 1: $3,600.63
  • Resistance 2: $3,662.73
  • Support 1: $3,399.57
  • Support 2: $3,337.46

Volume and Market Sentiment:

• Volume: 198,875 shares traded recently, indicating moderate trading activity.
• Price-Volume Relationship: The stock has been trading with buying interest, but the volume isn't exceptionally high, suggesting cautious sentiment.

Technical Analysis Conclusion:

The stock is in an uptrend but is approaching overbought levels. The RSI and Stochastic Oscillator suggest caution, while the MACD indicates continued bullish momentum. The Fibonacci levels show that AZO is trading above the pivot point, which is a bullish sign, but it's approaching the first resistance level.

Recommendation:

• Current Price: $3,618
• Action: HOLD or WAIT FOR PULLBACK
• Reasoning: While the trend is bullish, the overbought conditions on the RSI and Stochastic Oscillator suggest a potential near-term pullback. It may be wise to wait for a retracement to a support level (e.g., $3,455) before entering a long position.