AutoZone Shares Could Run Into Speed Bumps From the Broader Market

During Friday’s “Mad Money” program host Jim Cramer told viewers about his game plan for the week. On Tuesday, we get earnings from AutoZone Inc. (AZO) , Nike (NKE) and KB Home (KBH) . Cramer said he’d buy some AutoZone ahead of the quarter and more after the company reports. Let’s check out the charts and indicators of AZO to round out the picture.  


In this daily bar chart of AZO, below, we can see that prices have been trending higher since March and we can see a number of successful tests of the rising 50-day moving average line since June. The slope of the 200-day moving average line is slightly positive. The On-Balance-Volume (OBV) line shows a low at the end of February/beginning of March and a rise well into September. If there is more aggressive selling it is not showing up yet on the OBV line. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but does not display much trend strength.  




In this weekly bar chart of AZO, below, we can see a generally positive-looking chart. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line shows more aggressive buying for most of the past three years. The MACD oscillator is bullish but narrowing. 





In this daily Point and Figure chart of AZO, below, we can see an upside price target of $1.483, but we can also see that a decline below $1,172.11 could weaken this chart.  




Bottom line strategy: The charts and indicators of AZO are in pretty good shape, but weakness in the broad market could drag down prices. I have no special information about the earnings numbers for AZO but I would take a go-slow approach to buying for now.

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