AMZN closes above its opening price after recovering from early selling pressure
Amazon.com Inc. (AMZN) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
AMZN finished Wednesday at 1721.99 gaining $16.48 (0.97%) on low volume, slightly underperforming the Nasdaq 100 (1.13%). Trading up to $5.25 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMZN as at Oct 09, 2019):
Wednesday's trading range has been $15.59 (0.91%), that's far below the last trading month's daily average range of $28.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMZN.
After moving lower in the prior session, Amazon. com managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 1705.00 (S1). After having been unable to move above 1727.00 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 1729.95. The last time this happened on October 3rd, AMZN actually gained 0.88% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 1747.83 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 1705.00 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Amazon. com. Out of 679 times, AMZN closed higher 53.90% 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 60.97% with an average market move of 1.48%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 1.18% and AAPL closing 1.17% higher. On the flipside the worst performer has been NFLX closing -1.18% lower. Read more