Is Amazon.com Ready to Break Out?
Amazon.com has consolidated since last August. Now it may be ready for a breakout, especially with the Nasdaq leading again.
Friday’s close of $3,510.98 was AMZN’s second-highest close ever. It was also the highest close since September 2, a potential sign of investors accepting prices above $3,500.
Next, consider that last peak 10 months ago. It marked a frenzied peak in both AMZN and the broader Nasdaq (amid stock splits by Apple and Tesla.)
This is evident with the help of our Distance from MA custom script. It shows that AMZN was more than 50 percent above its 200-day simple moving average (SMA) last summer, the highest reading since November 2009. It took the bulls 9-10 months to regain their energy after that earlier push. If that precedent holds, it would suggest prices are now due for another breakout.
Another precedent could be fellow large-cap growth stock Nvidia. Notice how the semiconductor stock approached its old peak on May 24 and had a slight pullback, followed by a breakout to new highs. AMZN’s price action last week resembles the recent behavior in NVDA.
Finally MACD has been steadily rising on AMZN’s weekly chart.
Apart from the technicals, AMZN is starting a new chapter with Andy Jassy replacing Jeff Bezos as CEO. It’s also set to report quarterly results around July 29. Given its history of strong numbers the last several quarters, the approaching event could provide a tailwind for the shares.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Friday’s close of $3,510.98 was AMZN’s second-highest close ever. It was also the highest close since September 2, a potential sign of investors accepting prices above $3,500.
Next, consider that last peak 10 months ago. It marked a frenzied peak in both AMZN and the broader Nasdaq (amid stock splits by Apple and Tesla.)
This is evident with the help of our Distance from MA custom script. It shows that AMZN was more than 50 percent above its 200-day simple moving average (SMA) last summer, the highest reading since November 2009. It took the bulls 9-10 months to regain their energy after that earlier push. If that precedent holds, it would suggest prices are now due for another breakout.
Another precedent could be fellow large-cap growth stock Nvidia. Notice how the semiconductor stock approached its old peak on May 24 and had a slight pullback, followed by a breakout to new highs. AMZN’s price action last week resembles the recent behavior in NVDA.
Finally MACD has been steadily rising on AMZN’s weekly chart.
Apart from the technicals, AMZN is starting a new chapter with Andy Jassy replacing Jeff Bezos as CEO. It’s also set to report quarterly results around July 29. Given its history of strong numbers the last several quarters, the approaching event could provide a tailwind for the shares.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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