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AutoZone, Inc. Message Board

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  • ibdtrader ibdtrader Jul 10, 2001 4:11 PM Flag

    AZO is a short-term sell Target $31 eom


    I agree. From a technical standpoint, the chart has traded sideways since June 14, in a narrow range. This is called a Flat Base chart and the longer it goes without breaking resistance, the more likely it will fail and break support. Even though we are trading above the 50 day moving average, we have moved closer to each passing day.

    Next support level is in the $30 range. I will be tempted to buy there if that support can demostrate it can hold and that the upward price action can overcome resistance.

    Good Luck.


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    • IBD - Don't you know all that Technical Charting mumbo jumbo is garbage? Go check out some of Fama, Alexander, or MacBeth's work on Stock Price Behavior. They wrote it back in the 60's so it's been around a while. No analyst that is worth anything would ever rely on resistance levels without completely understanding the underlying fundamentals. If you are waiting for a 25% sell off to get back to $30, then you are going to be in for a wait.

      It's really your last idea that prompted me to write. The whole concept that you think the "support level is in the $30 range" BUT if it can hold where it is and perhaps even move up then you would be tempted to buy. So if I understand what you are saying is - You think it will settle in the $30 range, don't like it today because it has been in a "Flat Base", but if by some chance it breaks out then you would be willing to buy at a price somewhere above $40?

      You won't buy at $38-40 because you think there's no support, but you will buy at $40+ just because it broke out? Either you like it at it's current price or you don't, but waiting for it to go up before you buy just doesn't add up.

      Kicking Dogs - on post #6626 you said, "This is simply a very boring company/stock". I'm not sure what your idea of exciting is for companies and stock but being up OVER 90% since September 9, 2000, while the S&P 500 has been DOWN OVER 18% over the same period of time qualifies as exciting for most investors.

      If either or both of you are short, I sure hope they are covered, otherwise I can hear your phone ringing from here for a margin call.

768.34+2.58(+0.34%)Sep 30 4:01 PMEDT