This is the fourth annual prime day for Amazon.com Inc. (AMZN) . Let's see if we get free shipping on the charts and indicators this morning.
In the daily bar chart of AMZN, below, we can see that prices have rallied above the late April/early May peaks and are testing the September/October highs. In early trading activity Monday the share price of AMZN is higher. Prices are above the rising 50-day moving average line and the flat 200-day line.
The On-Balance-Volume (OBV) line (a volume indicator developed in the 1960s by the late Joe Granville) is pushing up to a new high and signals to us that buyers of AMZN have been more aggressive since late December.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero line.
In the weekly bar chart of Action Alerts PLUS holding AMZN, below, we can see the price movement over the past three years. Prices are above the flat 40-week moving average line.
The weekly OBV line is pointed up and confirms the price movement. The MACD oscillator on this longer time frame is positive.
In this Point and Figure chart of AMZN, below, we can see a large accumulation pattern. The base, when measured across (horizontally) yields a longer-term price objective of $2,740.
Bottom-line strategy: Some people believe that AMZN will take over all of retailing. Some people want to break up big tech. The Point and Figure chart (above) yields a pretty bullish price target. If you can afford to buy or sell AMZN and risk a close below $1,900 then approach from the long side.