How High Can Amazon Go?

AMZN remains in a powerful uptrend.
Stocks quotes in this article: AMZN

Shares of Amazon.com (AMZN) has nearly doubled from their large consolidation pattern in 2018 and 2019 around the $1,800 area, but that does not mean the rally is over.

Let's check out the latest charts and indicators of this Action Alerts PLUS holding. 

In the daily bar chart of AMZN, below, we can see how the shares have soared from their March low. Prices have climbed higher with sideways corrections. AMZN is above the rising 50-day moving average line and probably extended above the rising 200-day moving average line.

The trading volume has been more active since early February as traders and investors have been attracted to the online retailer. The On-Balance-Volume (OBV) line has been rising since the middle of  March and tells us that buyers of AMZN have been more aggressive with heavier trading volume being transacted on days when AMZN has closed higher.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has been bullish for most of the year and just turned upward to a fresh outright go long signal. 

 
In this weekly bar chart of AMZN, below, we can see the large sideways consolidation pattern we mentioned above. Prices traded sideways around the $1,800 area so a doubling to $3,600 is a natural price target. The shares are above the rising 40-week moving average line.
 
The weekly OBV has risen the past three years to match the uptrend in prices. The MACD oscillator is also bullish. 
 
 
In this daily Point and Figure chart of AMZN, below, we can see the fresh upside move and a potential price target of $4,278.
 
 
 
Bottom-line strategy: AMZN remains in a powerful uptrend. Traders could raise sell stops to a close below $3,100 and set their sights on a Point and Figure target in the $4,300 area.

(Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.)

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TAGS: Investing | Stocks | Technical Analysis | Retail | Technology | E-Commerce

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