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A very impressive jump in upside trade lifted Advance Auto Parts (AAP) - Get Advance Auto Parts, Inc. Report into the S&P 500's top 10 gainers list on Thursday. AAP finished yesterday's session with a 2.75% advance on its heaviest positive volume since early February. This breakout type move is leaving behind a very solid base near the $140.00 area. With earning due next week, AAP is beginning to set up for more upside. 

Back in late January, AAP, along with the rest of the auto part sector, took a damaging hit following talk of Amazon's interest in the business. AAP fell over 2.1% on the news, closing below its 50-day moving average for the first time since the election. A month later, a powerful earnings-inspired surge as the Feb. 21 session began left behind an ominous spike high. As the day came to a close, it was clear an important top was in. AAP fell steadily over the next eight weeks until regaining its footing near the $140.00 area.

Heading into this week, AAP had left behind back-to-back monthly lows near $140.00 as the post-earnings consolidation continued. Thursday's upside breakout from this healthy pattern pushed shares back above the 50-day moving average for the first time since the Jan. 23 sell off. The stock is now above a solid support zone between $147.00 and $145.00 and should be considered a low risk buy on weakness. A close back below $142.00 would violate this week's low indicating more basing is ahead. 

Of note, AAP is scheduled to report earnings next Wednesday before the bell.

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