HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Arthur Hill
After a failed breakout and successful support break, Autozone looks poised to move lower.
Position: Sell
Arthur Hill
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
PRINT THIS ARTICLE
EXHAUSTION GAP
Autozone Fails At Resistance
08/29/05 07:50:48 AMby Arthur Hill
After a failed breakout and successful support break, Autozone looks poised to move lower.
Position: Sell
| Autozone's (AZO) failed breakout and reversal at 100 featured some classic technical signals. First, the stock gapped above 100 and failed to hold it. Filling the gap made it an exhaustion gap, which is bearish. Second, the stock formed a harami (red oval) above 100, and the eventual decline below 100 confirmed this bearish candlestick reversal. Third, the index broke above 100 with high volume, but failed to hold the breakout. See Figure 1. |
|
| Figure 1: Autozone. AZO gapped 100 and failed to hold it. Filling the gap made it an exhaustion gap, which is bearish. |
| Graphic provided by: MetaStock. |
| Graphic provided by: Reuters Data. |
| |
| The August decline broke support at 97 and a flag formed over the last four to five days. Sharp declines create oversold conditions that need to be alleviated. This comes in the form of a flat consolidation or a low volume advance. AZO broke support on above-average volume (red arrow) and bounced on low volume (magenta trendlines). This formed a small rising flag, which is a bearish consolidation. |
| A move below 95 would signal a continuation lower and target further weakness to around 87-88. Two items confirm this support zone. First, the trendline extending up from August 2004 converged on 87 in early September. Second, broken resistance from the March-April highs turned into support around 88. |
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
| Title: | Editor |
| Company: | TDTrader.com |
| Address: | Willem Geetsstraat 17 |
| Mechelen, B2800 | |
| Phone # for sales: | 3215345465 |
| Website: | www.tdtrader.com |
| E-mail address: | arthurh@tdtrader.com |
Traders' Resource Links | |
| TDTrader.com has not added any product or service information to TRADERS' RESOURCE. | |
Click here for more information about our publications!
Comments
Date: 08/29/05Rank: 4Comment:
Date: 08/30/05Rank: 5Comment:
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog