Advance Auto Parts has been significantly beaten up over the last year. The last six months shows the stock building a nice base. The stocks sets up nicely here, but lets review the technicals. First of all, the SCTR shows it becoming one of the top stocks for price movement. That is a big plus as momentum investors find this stock showing up in the scans.
The Relative strength is near 11 month highs but not quite there yet. Price has consolidated sideways since January along with the broader market index ($SPX).
The volume trend recently has been positive and Monday was almost 25% above the average.
The big kicker is the company reports on Tuesday May 22nd which is today at the time of writing before the market open. This looks like an important earnings announcement the way the stock price is positioned. A break above resistance would suggest getting on board. Might be a good time to pay attention to this chart!
I host a new TV show on StockCharts.com called The Final Bar. It airs Thursdays at 5 PM ET and is repeated throughout the week on StockCharts TV. You can also catch it on my Vimeo channel or on the StockCharts.com YouTube Channel.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com