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2 months ago
Amazon / $AMZN – Technical Analysis
Without doubt, $AMZN has been a laggard among big tech in 2019. Investors have sat in agony as they watch $MSFT, $AAPL, and $GOOGL hit new all-time highs, but that may present an opportunity for investors looking to chase some gains before the inevitable market correction. Earning’s season is just around the corner and, in truth, expectations are quite low for AMZN as they had announced major spending during 2019 in the expansion of its same and next day delivery infrastructure.
On a more positive note, AMZN have announced that the 2019 festive period was a bumper season for them, so I would not bet against them producing massive numbers in their Feb 1st earning’s report.
Now, let’s look at the Weekly Chart for $AMZN for some guidance.
The Weekly Chart is showing some Notable Signals:
- MACD crossing the zero line is a well-recognized short covering / buy signal
- Histogram ticking nicely higher.
- Channel break has held after back-test during some heavy selling.
- Stochastic has room to run to high 90’s.
- 7&12 moving averages have completed bullish cross, although they do need to catch up, so consolidation expected.
- $1,865 possibly new support level.
- Fibonacci golden pocket has held for several days as resistance, so let’s look at a break above this as bullish and a buy signal, alert set for break above $1,913.
On the Daily Chart, we are seeing Mixed Signals:
- First and foremost, AMZN reclaimed the 200 moving average. We are viewing this as a bullish signal, as is the 50ma crossing above the 100ma while they also are now in upward trajectory.
- RSI is sitting on support which must hold.
- Volume bullishly higher on up days than down days.
- Friday’s candle reversed off support on a very negative day in the market.
Although AMZN was down 1.3% on Friday, the chart is quite bullish having held support on multiple occasions. If this level holds on Monday, then a long position should be on the cards.
Targets to consider:
Short term $1900 – at the Fibonacci golden pocket.
Medium Term $1933 – at monthly resistance.
Longer term $2000 – tested post earnings possibly.