We reviewed the charts of Amazon.com (AMZN) on October 14 and wrote that, "I must admit I have been looking at some purchases of things on Amazon.com during Prime Day, but I doubt if my few items will move the needle. While AMZN could push up to make a new all-time high, this might not be a real breakout of the trading range since July."
Let's check out the charts again.
In this daily candlestick chart of AMZN, below, we can see how prices have changed the past six months but the movement over the past few weeks is more important. We can see an evening star top reversal pattern and weakness the past two weeks or so.
Prices have been trading around the now declining 50-day moving average line. The 200-day moving average line is rising and way down in the $2,600 area.
The On-Balance-Volume (OBV) line has been moving sideways since July but basically following the price action. Note the three peaks in the line? A decline below the September low will turn the pattern bearish.
The Moving Average Convergence Divergence (MACD) has weakened and is close to the zero line.