Amazon.com Inc. (AMZN) has been a must own stock in many portfolios. The company has performed and the stock has soared from $200 back in 2012. I could provide other examples of how it has climbed and climbed into the stratosphere but you get the picture.
Well, despite being up 59% year to date, the shares have been pulling back this month and some of our indicators suggest further declines. Let's check.
In the daily Japanese candlestick chart of AMZN, below, we can see that prices have closed below the now cresting 50-day moving average line. The shares never got close to the 50-day average line since April but now we see prices trading below it.
The On-Balance-Volume (OBV) shows a rising pattern until this month. The OBV line has moved lower and is close to breaking under its July low. Someone has been a more aggressive seller of the stock.
The Moving Average Convergence Divergence (MACD) oscillator was bullish from April but has slipped below the zero line for an outright sell signal.