AMZN breaks below key technical support level
Amazon.com Inc. (AMZN) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMZN finished Monday at 1781.60 losing $19.20 (-1.07%) on high volume, but still slightly outperforming the Nasdaq 100 (-1.12%). Closing below Friday's low at 1800.79, the stock confirmed its breakout through the previous session low after trading up to $38.08 below it intraday.
Daily Candlestick Chart (AMZN as at Dec 02, 2019):
Monday's trading range has been $42.84 (2.37%), that's far above the last trading month's daily average range of $21.45. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMZN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 29th, AMZN lost -1.07% on the following trading day.
After trading as low as 1762.71 during the day, the market found support at the 20-day moving average at 1773.80. Prices broke below the key technical support level at 1795.71 (now R1), which is likely to act as resistance going forward.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six 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 55.15% 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 62.11% with an average market move of 1.21%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are NFLX losing -1.48% and GOOGL closing -1.17% lower. None of the markets managed to end the day in the green. Read more