NEW YORK (TheStreet) -- Auto parts retailer AutoZone (AZO) puts a four-quarter earnings winning streak on the line before the opening bell on Tuesday. At the same time, investors would like to see used car dealer CarMax (KMX - Get Report) accelerate out of bear market territory. Here are the expectations and how to trade the stocks.

Analysts expect AutoZone, a stock favored by Jim Cramer, to earn $12.67 a share. The consensus view on Wall Street is also favorable.

Analysts expect CarMax to earn 76 cents a share. Some say that strong auto sales should help this stock recover. Others are positive due to the company's expansion plans.

Here's the daily chart for AutoZone.


Courtesy of MetaStock Xenith

AutoZone closed at $724.99 on Friday, up 17.1% year-to-date, and above its 50-day and 200-day simple moving averages of $708.28 and $665.17, respectively.

A "golden cross", where the 50-day trended above the 200-day, occurred on Oct. 21 when the stock closed at $526.94. This technical signal helped investors capture the momentum to the stock's all-time intraday high of $754.90 set on Aug. 19. Note how the stock quickly recovered from its Black Monday low of $667.00.

Here's the weekly chart for AutoZone.


Courtesy of MetaStock Xenith

The weekly chart for AutoZone is positive, with the stock above its key weekly moving average shown in red at $713.69. Its weekly momentum reading is 65.10, up from 64.74 on Sept. 11. A close this week on Sept. 25 below $713.69 would confirm the all-time high as a cycle high for the stock.

Investors looking to buy AutoZone should place a good-till-canceled limit order to purchase the stock if it drops to $691.23, which will be a key level on technical charts until the end of the year.

Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $729.31, which will be a key level on technical charts until the end of September.

Here's the daily chart for CarMax.


Courtesy of MetaStock Xenith

CarMax closed at $60.27 on Friday, down 9.5% year-to-date, and down 20.1% from its all-time high of $75.40, set on April 2. The stock is thus in bear market territory, with the 50-day simple moving average of $62.71 below the 200-day simple moving average of $66.26 after a "death cross" was confirmed on Aug. 24.

A death cross occurs when the 50-day crosses below the 200-day, indicating that lower prices lie ahead. This occurred quickly as the stock traded to its Black Monday low of $55.27. The rebound to $62.96 on Sept. 17 was an opportunity to reduce holdings when the stock tested its 50-day simple moving average.

Here's the weekly chart for CarMax.


Courtesy of MetaStock Xenith

The weekly chart for CarMax is neutral, with the stock below its key weekly moving average of $61.98, but with its weekly momentum reading of 25.19 up from 21.59 on Sept. 11. A weekly close on Sept. 25 above $61.98 would shift the weekly chart to positive.

Investors looking to buy CarMax should place a good-till-canceled limit order to purchase the stock if it drops to $55.16, which will be a key level on technical charts until the end of this week.

Investors looking to reduce holdings should place a good-till-canceled limit order to sell the stock if it rises to $64.30, which will be a key level on technical charts until the end of 2015.

 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.