Trading Idea - Key levels for AutoZone

Published on Monday, 19 December 2011 19:12 Written by Christopher Lynn

New York, December 19th (TradersHuddle.com) - Shares of AutoZone, Inc. (NYSE:AZO) ended close to calculated support at $315.26 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

AutoZone's current stock range is defined by current calculated support defined at $315.26 and by the resistance level at $343.90, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of AutoZone, Inc.. However, this area if breached will signal participants that the stock failed to entice buyers to step in and support the stock.

Traders wanting to establish a position should pay close attention to AutoZone's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $343.90 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of AutoZone, Inc. closed at $324.96 in the previous trading session.

AutoZone, Inc. (NYSE:AZO) is a specialty retailer of automotive replacement parts and accessories. The Company offers an extensive product line including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.