AZOI make stock analyses before the opening, these levels i draw are strong support/resistance and are the most powerfull on the same day. So i use them the moment when the market opens.
You can see somethimes i use 2 - 3 levels because i dont know where the market will open.
when the market open i see witch levels are still valid if it gaps above or under my level this one cannot used anymore.
If price come close to my level i place a limit order.
time frame i use are 5-10 min candles if price close right under or below the level with few penny's its of the table ! my risk reward ratio is 2:1 would be good to use trial these are scalp trades in high illiquidity market conditions !
0HJL trade ideas
Pairs Trade - AZO a sell and AAP a buy Look at the history of these two stocks going back to 2011. They are identical in performance and yet AAP reports its earnings FIRST and the stock tanked 30 points or 15% last month. Autozone reports on Dec 8th and could face a similar fate as AAP since they are in the same business.
Lately, new car sales have taken off to the upside and at some point investors could back off on the sky-high valuations of these stocks that have been delivering steady and consistent profits gains over the years.
It's never easy to call the end of a trend, but I'm thinking this is a low risk trade to be long AAP and short AZO into earnings next week. You can manage risk best using options to set up this trade.
Target 10% down on AZO relative to AAP. Your profit could come from one side or the other, but you would think that the catalyst would be the earnings report on 12/8/2015.
Stay tuned.
Tim
AZO 776.28 last
AAP 159.94 last
AZO makes new highAZO has been a well trending stock for many years, especially since breaking above the $200 zone in 2010.
Despite the great trend I would not have traded this due to the low volume. I generally prefer stocks with much higher volume to help aid liquidity (although AZO has done exceptionally well without adhering to this criteria). And now the stock is pretty expensive so only those with large accounts could trading consider it. AZO can go into quite long pullbacks/consolidation which are not overly deep as far as the chart is concerned - but which are over $70 in depth (from a monetary perspective).
Overall, a good chart but not a practicable one to trade.