AMZN unable to break through key resistance level
Amazon.com Inc. (AMZN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMZN ended the week 1.12% higher at 2436.88 after losing $9.86 (-0.4%) today, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading $14.84 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 2442.54, Amazon. com confirmed its breakout through the previous session low after trading up to $12.41 below it intraday.
Daily Candlestick Chart (AMZN as at May 22, 2020):
Friday's trading range has been $39.72 (1.62%), that's below the last trading month's daily average range of $58.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMZN.
Unable to break through the key technical resistance level at 2461.00 (R1), the stock closed below it after spiking up to 2469.85 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, AMZN actually gained 1.98% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Amazon. com. Out of 366 times, AMZN closed higher 54.92% 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 61.20% with an average market move of 1.42%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 1.52% and AAPL closing 0.64% higher. On the flipside the worst performer has been NFLX closing -1.59% lower. Read more