AMZN pushes through key technical resistance level
Amazon.com Inc. (AMZN) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
AMZN finished Thursday at 1699.19 gaining $30.79 (1.85%), significantly outperforming the Nasdaq 100 (0.64%) ahead of tomorrow's NFP report. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AMZN as at Dec 06, 2018):
Thursday's trading range has been $89.34 (5.53%), that's above the last trading month's daily average range of $64.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMZN.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 1685.10 (now S1), which is likely to act as support going forward. The last time this happened on November 30th, AMZN gained 4.86% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test November's close-by high at 1784.00.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 9 times, AMZN closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 77.78% with an average market move of 5.26%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 2.74% and GOOGL closing 1.47% higher. On the flipside the worst performer has been AAPL closing -1.11% lower. Read more