$AZO earnings: Auto parts retailer Autozone announced its earnings for the quarter ended August 2009 on September 23, 2009, before market open. Its fiscal fourth quarter profit dropped by 3.1% as the company invested in its Hub Stores and accelerated its store maintenance program.
Market’s reaction: Autozone’s shares fell 7.5% to close at $141.50 on September 23, 2009. In fact the shares started going down before the market open, and it opened at $148.00 at 9:30 AM EST on September 23, 2009. Currently shares are trading at around $142.00.
Entry and Exit Points: First thing first, never invest in a stock before the earnings, unless and until you are 100% sure that the stock is going to go in your favor. In swing trading Entry and Exit points are determined by technical analysis.
Market reacts to the news and a swing trader can use this reaction to his or her advantage by waiting for the right moment or a reversal to enter the trade. Reversal is a change in direction of price trend. In simple terms a downtrend changing into a uptrend or vice versa is called a reversal.
AZO entry point was at around $147.50 on September 23, 2009 at around 11:25 AM.
AZO exit point was at around $142.50 on September 24, 2009 at around 10:30 AM.
A difference of $5.00 in two days of swing trading.
Recommended Books:
Technical Analysis for Dummies
Technical Analysis: The Complete Resource for Financial Market Technicians
Japanese Candlestick Charting Techniques, Second Edition
