Chart of the Week: Amazon
Happy Wednesday. It’s time for our chart of the week, and we’re gonna be focused in on Amazon: AMZN is the symbol. Lets take a look at this one. It’s had a really good run here for the past couple of weeks. Even if it pulls back a little bit, I still do think it’s got some gas left in the tank over here.
So let’s take a look at this chart here. You can see that here today it is breaking out above resistance. Let’s call it $248-247. The all time high of course is a little bit higher than that – about $258.
It’s really run up strong on some good volume over the past two weeks, since the start of April.
MACD on a buy signal over here. You can see that.
Good relative strength.
We are getting overbought here, but when a stock runs up like this so quickly and it gets to an overbought reading very, very fast, it is not necessarily a sell signal. What you want to do is, you want to pay attention the price action and if it keeps going, it keeps floating higher, you stay with the trade. You trail down to your stops and you get out at to certain levels. Maybe a trailing stop like 8%, 10% on an options play.
But you know, it’s left a couple of gaps over here. Eventually it’s going to get filled. But I’m not saying that’s gonna happen right now.
I do think that the stock has got a ton of momentum here. And I think it can get up to about the $260-263 level before it starts to run out of gas, run out of energy.
It’s doing really well. It’s well above the 10 day moving average. It’s well above the 50 day moving average, which is all the way down to $213. It blasted right through the 200 day moving average as well, at about $225, last week.
A lot of momentum in this stock right now, and I do think there’s a little bit more upside to go.
So that’s Amazon.
