AMZN gains $112.80 (3.7%) after posting strong earnings
Amazon.com Inc. (AMZN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMZN ended the month 14.71% higher at 3164.68 after gaining $112.80 (3.7%) today on high volume, notably outperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (AMZN as at Jul 31, 2020):
AMZN reported earnings of $10.3 per share after Thursday's market close. With analysts having expected an EPS of $1.75, Amazon. com Inc. topped market expectations by 488.6%. The company's last earnings report was released on April 30, 2020, when Amazon. com Inc. reported earnings of $5.01 per share failing market expectations by -21.7%.
Friday's trading range has been $93.48 (2.88%), that's slightly below the last trading month's daily average range of $116.66. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for AMZN.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock managed to close back above the 20-day moving average at 3070.79. When this moving average was crossed above the last time on July 24th, AMZN gained 1.54% on the following trading day. Prices are trading close to the key technical resistance level at 3240.58 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 3344.29, upside momentum could accelerate should Amazon. com be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 118 times, AMZN closed higher 57.63% 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 66.10% with an average market move of 1.98%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are AAPL gaining 10.47% and FB closing 8.17% higher. On the flipside the worst performer has been GOOGL closing -3.28% lower. Read more