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Autonation (AN) range trade

Autonation is a stock trading in a range. Today it rebounded from the support line (see green horizontal line) and it seems it may go up to the upper resistance line (see higher green horizontal line) to complete another wave of range trending.

Autonation (AN)
Click to enlarge

However, there are two obstacles on the way. The stock is trading below 200 day SMA (see lower red line). The stock may recover and re-test this line as it is now a resistance, or it can break thru as it did at the beginning of October.

well, right now I am buying one call contract and later (maybe next week) I will be looking at adjustment of this trade.

Here is the order:

BTO 1 AN Dec17 2011 33 strike call

Happy Trading!





5 responses to “Autonation (AN) range trade”

  1. Eldridge says:

    Hey man, I just wanted to ask what do you think about AN now, will it resume the uptrend or do you think it will turn down? Are you still holding this stock? Thanks

  2. Gaston says:

    @Randy

    Typically if the stocks come into a range trading from previously bullish trend, it will most likely break in the same direction. If that happens AN should break up from this range. Although, in my opinion this range is quite wide.

    If the market sustains all the European mess and will continue up (who knows) this stock (AN) should bounce and go up to the upper (resistance) range line. Today’s trading was nice and the stock jumped well up.

  3. alex says:

    How do you find stocks which are in a range like AN? It would be great to have a screener which finds you stocks in early stage and then you can trade this range. What if AN won’t go up that much?

  4. Andrew says:

    Wow how do you select stock you want to trade? This stock (AN) looks like it should work nicely!

  5. Randy says:

    Hi, I was looking at exact same thing that Autonation is in a range. Hopefully it will continue up and breaks thru 200 day up. I am also long in this stock! I am too new to trading options so I bought some stocks, but maybe on Monday I will try to buy one call contract and see how that works. Can you please track this stock a bit more closely so I can follow it? Thanks a lot.

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