Today's strong action is on high volume, the sort of quality you like to see, a combination of strong turnover along with strong price action simultaneously.
The indicators are starting to come in line as well. Notice the MACD (moving average convergence divergence) at the bottom is about to cross over for a buy signal, while the TDI (traders dynamic index) at the bottom, which compares the RSI with Bollinger band placement is also about to cross for a buy signal (arrow).
But the top chart is the most exciting part, where the stock has simply blasted through the downtrend line from early August and is pushing higher. Nothing bearish about that, and in fact leads us to believe Amazon is on its way past 2022 resistance at $146, then onto the $170 level of resistance.
We really like Amazon here and rate it a One in the AAP portfolio, which means accumulate anytime.
(This commentary was originally published on Action Alerts PLUS on Aug. 31.)