AMZN breaks below Thursday's low
Amazon.com Inc. (AMZN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMZN ended the week 2.67% higher at 2134.87 after losing $15.00 (-0.7%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 2142.00, the share confirmed its breakout through the previous session low after trading up to $16.11 below it intraday.
Daily Candlestick Chart (AMZN as at Feb 14, 2020):
Friday's trading range has been $33.11 (1.54%), that's slightly below the last trading month's daily average range of $35.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AMZN.
Despite a strong opening Amazon. com closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 24th, AMZN lost -1.79% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Amazon. com. Out of 300 times, AMZN closed higher 52.33% 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 64.00% with an average market move of 1.93%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 0.49% and GOOGL closing 0.35% higher. On the flipside the worst performer has been NFLX closing -0.26% lower. Read more