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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