AMZN rises to highest close ever
Amazon.com Inc. (AMZN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMZN finished Thursday at 2890.30 edging higher $11.60 (0.4%) on high volume, slightly underperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 2890.30 marks the highest recorded closing price ever. Trading $43.55 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 19th, AMZN actually gained 1.45% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AMZN as at Jul 02, 2020):
Thursday's trading range has been $84.06 (2.89%), that's slightly above the last trading month's daily average range of $73.06. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AMZN.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 2669.23.
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 "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 176 times, AMZN closed higher 56.25% 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 66.48% with an average market move of 1.78%.
With two out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are NFLX losing -1.8% and FB closing -1.74% lower. On the flipside the best performer has been GOOGL closing 1.94% higher. Read more