Amazon.com Holds Breakout to a New High
Amazon.com barely flinched when coronavirus slammed markets in February and March. Along with Netflix, it was one of the first major names to break out in April. And now it’s showing signs of continuation to the upside.
Few stocks seem to have a stronger fundamental story than AMZN because coronavirus has boosted both halves of its business: e-commerce and cloud computing. It’s now in a position to clean up as traditional retailers go under and more businesses adopt AWS.
Several indicators highlight the trillion-dollar company’s technical strength. First, the moving averages show how AMZN’s price action has opened following a year of tight consolidation.
Second is the ascending triangle after its breakout, which it escaped last week.
Next, stochastics show the stock retreated from overbought conditions. While it’s not yet oversold, it may not get much cheaper given the price action elsewhere in the
Nasdaq.
Finally, the Bollinger Band width shows AMZN’s range is just now starting to expand.
Given its tight range, traders may want to lean on the bullish side with risk management below the May 20-21 high around $2,500.
Few stocks seem to have a stronger fundamental story than AMZN because coronavirus has boosted both halves of its business: e-commerce and cloud computing. It’s now in a position to clean up as traditional retailers go under and more businesses adopt AWS.
Several indicators highlight the trillion-dollar company’s technical strength. First, the moving averages show how AMZN’s price action has opened following a year of tight consolidation.
Second is the ascending triangle after its breakout, which it escaped last week.
Next, stochastics show the stock retreated from overbought conditions. While it’s not yet oversold, it may not get much cheaper given the price action elsewhere in the
Nasdaq.Finally, the Bollinger Band width shows AMZN’s range is just now starting to expand.
Given its tight range, traders may want to lean on the bullish side with risk management below the May 20-21 high around $2,500.
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