Amazon (AMZN) surged sharply higher Friday as shareholders and analysts cheer its second-quarter earnings. Analysts said that AWS acceleration and strong revenue growth overall were the key points fueling the price advance Friday morning. That sounds good to me, but let's stick to the charts and indicators.
In our July 18 review of AMZN we wrote that, "Traders could go long AMZN around $116. Risk below $108. On the upside we could rally to $143 or higher."
Let's see where we are now.
In the daily bar chart of AMZN, below, we can see that the shares have gapped higher. AMZN is closing in on the lows of January, February, March and late April. This price zone may provide some chart resistance as it acted as former support. Prices bottomed in May and June and the uptrend was under way before today's price surge.
The slope of the 50-day moving average line is positive and the On-Balance-Volume (OBV) line is pointed higher and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line now.