zukedu

AZO Short on Descending Triangle [Entry attempt #2]

Short
zukedu Updated   
NYSE:AZO   AutoZone, Inc.
Pros:
- Both FI and MACD Histogram ticking lower when price is going high.
- RSI overbought.
- Double hanging man represents weak buyer pressure around 1167.
- Profit target 2R for now since it is counter trend trade. (Will adjust profit target accordingly depending on how it turns out the next few days)

Cons:
- EMAs are still pointing upwards.
- Counter trend trading

Conclusion
- The divergance of both MACD and FI holds more weight in my opinion. May be wrong but we'll learn as we go. My first time executing a counter trend trade.
Comment:
Entered the trade but prices rallied.

Still make sense to be in the trade because of:
- MACD ticking lower even though price increased.
- Force Index on 13 Nov is not as high as 11 Nov when closing price is similar
- Lack of long wick represents bull did not attempt to push the price above resistance
- Decent tail length represents bears power to push price down
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