Amazon.com ( AMZN) received an impressive upgrade Tuesday from a Bank of America analyst who called Amazon their top FANG stock. Fine by me but I still want to check on the charts and indicators.
In the daily bar chart of AMZN, below, we can see that the shares briefly broke the lows of August and early October. Prices are recovering but remain below the 50-day and 200-day moving average lines.
Trading volume looks heavier since early November and the On-Balance-Volume (OBV) line has been weak since late November. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line but is close to a cover shorts buy signal.
In the weekly Japanese candlestick chart of AMZN, below, we can see a lower shadow on the most recent candle. This tells us that the lows were rejected. Hopefully, the candle is "lighting the way higher" as prices are below the 40-week moving average line.
The OBV line shows softness and the MACD oscillator is only slightly above the zero line.
In this daily Point and Figure chart of AMZN, below, we can see a downside price target of $2,940. A trade at $3,433 will likely turn the chart bullish.
In this weekly close only Point and Figure chart of AMZN, below, we used a five-box reversal filter. Here the software yields a price target of $5,537.
Bottom-line strategy: Aggressive traders could probe the long side of AMZN at current levels risking to $3,100. Strength above $3,433 will be an important point to reach.
