AMZN runs into sellers around 3187.24 for the third day in a row
Amazon.com Inc. (AMZN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AMZN finished Wednesday at 3078.10 losing $78.03 (-2.47%), underperforming the Nasdaq 100 (-1.67%). Today's close at 3078.10 marks the lowest recorded closing price since July 30th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 3108.92, the share confirmed its breakout through the prior session low after trading up to $34.76 below it intraday.
Daily Candlestick Chart (AMZN as at Sep 16, 2020):
Wednesday's trading range has been $113.08 (3.56%), that's slightly above the last trading month's daily average range of $104.81. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMZN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on September 10th, AMZN lost -1.85% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After spiking up to 3187.24 during the day, the stock found resistance at the 50-day moving average at 3186.66. Amazon. com ran into sellers again today around 3187.24 for the third trading day in a row after having found sellers at 3175.02 in the previous session and at 3187.39 two days ago.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test August's close-by low at 3073.00.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 47 times, AMZN closed higher 57.45% 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 70.21% with an average market move of 3.91%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are FB losing -3.27% and AAPL closing -2.95% lower. None of the markets managed to end the day in the green. Read more