Earnings are having their way, both good and bad, with stocks again this morning as the market prepares for yet another wave of retail and technology companies to report their results this week.
Today’s three big stock charts takes a look at AutoZone, Inc. (NYSE:AZO) and Agilent Technologies Inc (NYSE:A). Both companies are seeing a pick-up in action this morning after their earnings results hit the tape. In addition, we’ll take a closer look at the chart of ArcelorMittal SA (ADR) (NYSE:MT), which is indicating that this steel stock may be the best option in a struggling sector.
AutoZone, Inc. (AZO)
Shares of Autozone are trading 8% lower in early morning activity as the company dropped some poor earnings results on investors.
AZO stock had already been caught in an intermediate- and long-term bear market trend as shares have been heavily influenced by the 50- and 200-day moving averages. Both of these trendlines are above Autozone’s current stock price and have been in declining patterns since January.
Today’s move will also break through the technically significant $650-price-point. This round-numbered support was first crossed above in January 2015. Now, with AZO stock giving this level up easily, technical traders are sure to get into the mix trying to drop this fundamentally challenged company from their portfolios.
Agilent Technologies Inc (A)
Agilent provided a solid earnings report last night after the close. Shares of A are trading almost 6% higher after the report and look to extend an already strong bullish trend.
Agilent’s recent pullback from the one-day spike last week pouts it in a technical position to see a “buy the news” rally, which will help fuel the strong trend seen since December.
In addition, we’re going to see A stock break above its upper Bollinger Band this morning. This move will alert technical traders and chart watchers that the stock is ready to make a fast and aggressive move higher. We’re expecting to see Agilent stock experience increased volume on this move as it has been a relative strength leader in the sector and market.
Watch for some chart resistance at $60 as round numbers have been sensitive to A stock.
ArcelorMittal SA (ADR) (MT)
Looking for a deal in the Steel sector? ArcelorMittal may be it. The international steel company has outperformed its domestic peers, despite the talk of tariffs and taxes on steel coming into the country.
The short-term chart for MT is a mess, volatility and no movement, but there are signs that that may change.
ArcelorMittal shares grabbed support at their 200-day moving average a few times over the last week, signaling that we may see some technical interest brewing on the bullish side.
In addition, MT stock is bumping against its 20-month moving average. This is the line of demarcation between a long-term bull and bear market is the line to watch as almost all of ArcelorMittal competitors have fallen below their respective 20-month trendlines. This makes MT the least dirty shirt in the hamper from a technical perspective.
Finally, ArcelorMittal got an upgrade from UBS analysts this morning. This is likely to draw some buyers into the stock and help form an intermediate-term tradable bottom at $22.50.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.