Shares of e-commerce giant Amazon (AMZN) have been quietly rising from a low in December. Prices tested and failed at the declining 200-day moving average line in early February, but we are back to that average line again. Can AMZN break above this math generated smoothed trendline?
Let's check the charts and indicators for clues.
In this daily bar chart of AMZN, below, I can see that the slope of the 200-day moving average line has begun to bottom out. This is a positive development and tells me that we are in the late innings of a downward trend. AMZN has rallied to retest this line.
A close above this indicator looks possible today and more certain next week. The daily On-Balance-Volume (OBV) line has been firming from early January and tells me that buyers of AMZN are being more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish. This oscillator was weakening the last time AMZN challenged the 200-day line.
In this weekly Japanese candlestick chart of AMZN, below, I see an improving picture. Prices are trading just below the bottoming 40-week moving average line. The weekly OBV line looks like it is reversing to the upside after a long decline. The MACD oscillator has been improving and only stands slightly below the zero line now.
In this daily Point and Figure chart of AMZN, below, I can see an upside price target in the $122 area.
In this weekly Point and Figure chart of AMZN, below, I can see an upside price target in the $178 area.
Bottom line strategy: Aggressive traders could long AMZN at current levels risking to $100. $122 is our first upside price target. The $178 area is my longer-term objective.
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