By: Zev Spiro
An end to the primary up trend in Autozone Inc. (AZO) was recently signaled by breaks in the 50 day simple moving average and the bullish primary trend line. Currently, the price is consolidating in a bear flag pattern. If the lower trendline of the flag is broken, a move to $235 is initially expected.
The charts below illustrate the break of the bullish primary trend and highlight the bear flag pattern. Trigger: move below the lower line of the flag (currently $250) Stop: confirmed move above the upper boundary line of the flag, Aggressive entry: short on a bounce before the trigger.
UPDATES:
1) Imperial Oil Limited (IMO) (Market Letter 1/18/11) – IMO triggered two days ago. If one did not initiate yet, wait for a pull back as it is overextended in the short term.
2) Jones Lang LaSalle Incorporated (JLL) (Market Letter 1/18/11) – Reached the 96.50 objective yesterday. If you are still long, use the previous days low as a hard stop and continue trailing higher.
3) Sohu.com Inc. (SOHU) (Market Letter 1/19/11) – Due to the recent parabolic move, active traders may lighten up into the 85-90 resistance range and buy back on a dip.
If you are interested in receiving Zev Spiro’s market letter, please email zevspiro@oripsllc.com subject “T3”
*DISCLOSURE: No position, but plan on initiating position before the open
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