Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of AZO stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength. |
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| The Volumetric Profile is the central concept behind Volume Stratification Analysis. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. Here the price column corresponding to the current price of AZO stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of AutoZone, Inc.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 1 on a scale from 1 (best) to 3 (worst), because the price is above the Volumetric line, indicating some positive market sentiment. The only significant volumetric support exists in the area around the $80 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $80.00 - $80.99 | 7.04 |
| To the upside, a layer of potential resistance hovers around the $255 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $255.00 - $255.99 | 0.10 |
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| Horizontal maroon lines indicate Negative Volumetric Peaks. Price intervals with these characteristics are often associated with gaps, although they sometimes operate as support levels. Quarterly and yearly turn-arounds are circled. $240 is the most significant of several valleys (i.e. negative peaks) in today's profile underneath the current price for AZO. |
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| Here, the horizontal lines mark the points of Maximum Negative Slope in the Volumetric Profile. These strata are known to act as resistance levels against upward movement, and are sometimes associated with yearly and quarterly tops. Also, as is typical of resistance levels, they may do double duty as support, but that is not the typical case. |
For Members: Deeper Analysis, with Price Predictions for AZO Common Stock |
| 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. |