Amazon's (AMZN) charts were reviewed on April 25, when I wrote that "The broad market averages are retreating Tuesday as traders and investors worry about the health of our banking system and other worries but stocks still are capable of responding positively to earnings beats. I have no special knowledge of what AMZN will tell shareholders and analysts on Thursday but the charts and indicators show me a positive picture."
AMZN has worked higher and another review is warranted.
In this updated daily bar chart of AMZN, below, I can see that the price of AMZN has broken out above the 200-day moving average line. The slope of the 50-day moving average line is positive. The On-Balance-Volume (OBV) line has strengthened since the beginning of the year. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late March.
In this weekly Japanese candlestick chart of AMZN, below, I see a developing bullish story. Prices have made a big decline followed by a new base. AMZN has rallied back above the 40-week moving average line. The 40-week line is bottoming. The weekly OBV line shows a rise from December. The MACD oscillator is only slightly below the zero line.
In this daily Point and Figure chart of AMZN, below, I can see a $137 price target.
In this second Point and Figure chart of AMZN, below, I used weekly price data with a five box reversal filter. Here the X's and O's yield a price target in the $240 area.
Bottom line strategy: In my
April 21 review of AMZN, I wrote that "Aggressive traders could long AMZN at current levels risking to $100. $122 is our first upside price target. The $178 area is my longer-term objective." Traders who are long AMZN should continue to hold but raise stops to $105. $137 is my first target. $178 and $240 our my longer-term objectives.
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