If you enjoy trading trend reversals and surprise bullish rallies (and breakouts), AutoZone (AZO) is the stock for you!
Here’s the V-Spike Reversal from Down to Up and the New Levels to Watch:
AutoZone (AZO) stalled with a Distribution Pattern near $725 with a breakdown (breakout) and Trend Reversal DOWN in April 2017.
From there, price collapsed from the $700 level toward the $500 Round Number pivot.
Rather than build a “Rounded Reversal” or Accumulation Pattern, buyers intervened to create a V-Spike Reversal that catapulted share prices through $600 and now $700.
We’re watching confluence target – now achieved – at the $700 price level.
Use this as your Bull/Bear pivot for short-term trading strategies.
Price initially stalled into the 38.2{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} Fibonacci Retracement just above $600 and when buyers took price above this pivot, a rapid rush of buying (and short-covering/short-squeeze) sent price speeding toward our current target.
Study this pattern to pinpoint similar/future reversal patterns like this event.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SOURCE: Afraid to Trade.com Blog – Read entire story here.
