Technical Analysis: AutoNation inc.

AutoNation Inc. Weekly

A consolidatory trend has laid claim to activity in this stock over the past year or so after a severe drop in price. The lows of $41.50 that's been tested twice over this period but don't look to be set in stone as most of the price movement has occurred above $44.

Resistance just under $54 has prevented the price from surging higher and delivering the throwback many buyers were looking for.

The stochastic seems perfectly poised to hint at the next direction of the price from it's present state. Although it should be noted that the current rally off the lows of $41.50 back to the top of resistance has been the strongest yet in this cycle of  the trend.

Long tails left to the top of candles together with the area of overbought captured by the stochastic does leave a sense of pessimism.