Amazon.com (AMZN) has rallied strongly from late December, but more gains could be ahead for the share price of the e-commerce giant. Let's check out the charts and indicators.
In this daily bar chart of AMZN, below, I can see that prices bottomed out from November to April. Prices turned stronger in May and broke above the early February highs. The trading volume has increased since early April. The On-Balance-Volume (OBV) line shows improvement from early January. The Moving Average Convergence Divergence (MACD) oscillator shows strength from the middle of March.
In this weekly Japanese candlestick chart of AMZN, below, I can see an improving picture. Prices are trading in an upward trend above the still declining 40-week moving average line. The weekly OBV line made a low in December before turning higher. The MACD oscillator crossed above the zero line in May for an outright buy signal.
In this daily Point and Figure chart of AMZN, below, I can see a potential price target of $137.
In this weekly Point and Figure chart of AMZN, below, I used a five box reversal filter. Here the software projects a price target of $240.
Bottom line strategy: Traders who want to gain some exposure to AMZN could go long AMZN in the $125-$120 area. Risk to $114. My price targets are now $137, $178 and then $240.
