Amazon.com (AMZN) has been a key stock to watch the past 10 years and it is no different today. AMZN made a low in late December last year and came roaring back to an early May high. Prices corrected in May and rebounded this month but prices stopped short of the May high.
Trading volume has been declining since late December and the On-Balance-Volume (OBV) line peaked in late April which doesn't seem to worry the bulls. Let's look closer.
In this daily bar chart of AMZN, below, we can see that prices are struggling to stay above the rising 50-day moving average line. the 200-day line is now showing a negative slope.
The OBV line is making a lower high and the Moving Average Convergence Divergence (MACD) oscillator is narrowing towards a fresh take profits signal on AMZN.
In this weekly bar chart of AMZN, below, we can see lower highs the past 12 months. Prices are above the 40-week moving average line but the slope of the line is now negative.
The weekly OBV line is mirroring the price action while the MACD oscillator is close to a take profits sell signal.
In this Point and Figure chart of AMZN, below, we can see an upside price target for the giant online retailer but there is resistance above and support below.
The resistance (looking at the volume at price bars on the left scale) looks stronger than the support so we could see prices take the path of least resistance.
Bottom line strategy: Being a perma-bear on AMZN has not been a successful long-term strategy, however, that does not mean buying the dip will always work. A decline below $1750, the 200-day average, could precipitate further declines.