AMZN breaks above 50-day moving average for the first time since March 4th
Amazon.com Inc. (AMZN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AMZN finished Thursday at 1955.49 gaining $69.65 (3.69%) on low volume, strongly underperforming the Nasdaq 100 (5.72%). Today's close at 1955.49 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1950.26, Amazon. com confirmed its breakout through the previous session high after trading up to $5.92 above it intraday.
Daily Candlestick Chart (AMZN as at Mar 26, 2020):
Thursday's trading range has been $66.89 (3.52%), that's below the last trading month's daily average range of $90.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMZN. Prices continued to consolidate within a tight trading range between 1812.00 and 1957.00 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 50-day moving average at 1943.67 for the first time since March 4th. When this moving average was crossed above the last time on March 4th, AMZN actually lost -2.62% on the following trading day. The market found buyers again today around 1889.29 for the third trading day in a row after having found demand at 1885.78 in the prior session and at 1900.34 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 1885.78 where further sell stops might get triggered. As prices are trading close to March's high at 1996.33, upside momentum could accelerate should the stock mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 75 times, AMZN closed higher 58.67% 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 69.33% with an average market move of 2.57%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 6.02% and GOOGL closing 5.56% higher. None of the markets ended the day in the red. Read more