AMZN finds buyers at key support level
Amazon.com Inc. (AMZN) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMZN finished Wednesday at 1871.15 gaining $31.03 (1.69%), slightly outperforming the Nasdaq 100 (1.37%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 1852.44, the stock confirmed its breakout through the previous session high after trading up to $21.99 above it intraday.
Daily Candlestick Chart (AMZN as at May 15, 2019):
Wednesday's trading range has been $51.42 (2.81%), that's far above the last trading month's daily average range of $34.31. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMZN.
Despite a weak opening Amazon. com managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 6th, AMZN actually lost -1.51% on the following trading day.
After trading down to 1823.01 earlier during the day, the share bounced off the key technical support level at 1823.75 (S1). The failure to close below the support might increase that levels importance as support going forward. The market found buyers again today around 1823.01 for the third trading day in a row after having found demand at 1815.75 in the previous session and at 1818.00 two days ago.
Although AMZN is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 388 times, AMZN closed higher 54.12% 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 63.40% with an average market move of 1.55%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are GOOGL gaining 4.08% and FB closing 3.07% higher. None of the markets ended the day in the red. Read more