Company Description: AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It offers various automotive products and services, including new vehicles, used vehicles, parts and automotive services, and automotive finance and insurance products, as well as provides a range of vehicle maintenance, repair, paint, and collision repair services, including warranty work. The company also arranges financing for vehicle purchases through third-party finance sources. In addition, it offers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection, ‘tire and wheel’ protection, and theft protection products. As of December 31, 2008, AutoNation owned and operated 302 new vehicle franchises from 232 stores located in major metropolitan markets, primarily in the Sunbelt region of the United States. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

Our Analysis: The shares of Autonation, Inc. 'AN' closed above a key upside resistance level on heavier than normal trading volume on Thursday. In the process they completed a series of cup patterns with measured moves to our stated prices targets. This is a bullish trading signal. The shares of 'AN' should continue to move higher and test $13.29/share, our initial price target. If the shares of 'AN' close above that level, then they should continue to move higher and test $14.09/share, their measured move from the larger of the 2 cup patterns. I see downside support on the shares of 'AN' and have set my stops accordingly at $10.93/share.