Chapter X: Technical Analysis discovers the range of moods of investors toward AZO. |
| Prev. Co. | Next Co. | |
|
| ||
| For AutoZone, Inc., the Negative Volume Index is a well known indicator for market sentiment. The modern version of the indicator has received several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
|
Interpreting the Calibrated NVI for AutoZone, Inc.: In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
| Prev. Co. | Next Co. | |
| ||
| Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for AutoZone, Inc. covers the few years before the start of the chart at the top of the page. |
| Prev. Co. | Next Co. | |
| ||
| Weekly average closing altitude was 47.88 percent for the week ending 1/28/2011. Past values of the Closing Altitude indicator are marked by the blue line. 50 percent closing altitude is marked as the midline. If the closing prices happened to be exactly halfway between the high and low, they would be plotted on this midline. Values above the midline indicate that day traders have positive feelings toward AZO while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The short-term trend is positive, with a slope of 2.46. AutoZone, Inc. stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| The Volume Portion is low for the latest data at 0.69. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. AutoZone, Inc. share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.Short term, the slope of this indicator is negative at -0.05. |
Influence of Investor Sentiment on AZO stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated. From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp. |