Momentum stocks have been enjoying good flow lately, and Amazon has been a beneficiary. Jim Cramer and I featured Amazon when we discussed the FANG stocks on Mad Money just two weeks ago. At the time, the chart was weak, but since then, Amazon has shown some nice power and now has a V shaped chart. While that seems rather rushed (Nasdaq: AMZN is up more than 15% in a mere two weeks!), I would not be surprised to see a bit of give back.
However, the chart is constructive and the shorts are now on the run. On Monday, the stock bolted higher on decent turnover, gapped above the 200 ma, and closed near the highs of the session. The MACD is on a buy signal here, and while the resistance is ahead (about 8% higher), there is still room to move up. A nice pullback/consolidation would be okay here. I would expect to see a lower high on the chart and then a move back up.
AMZN Video Chart Analysis
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Amazon.com, Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones; and provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store. In addition, the company offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content.