The monster Amazon earnings reaction has triggered a handful of bullish technical developments in Amazon’s stock (AMZN). To recap, the stock had been loitering in a downtrend (lower highs) for the past year. And muted Amazon earnings expectations allowed the stock to pop on its earnings beat. And this set the stage for today’s AMZN chart breakout to new 6 month highs.
Let’s take a look at the chart and discuss the bullish implications:
Amazon (AMZN) Stock Chart – The Amazon earnings beat!
Here’s a recap of bullish developments from today’s price breakout:
- AMZN chart breakout! Â Amazon broke trend line resistance from last January.
- It also broke the relative strength downtrend from last winter.
- The stock broke a descending triangle pattern to the upside, a historically very powerful development.
- Price is now 10% above the confluence of weekly moving averages. It likely will turn the shorter term averages up and confirm the near-intermediate term trend higher.
- The move created a fresh bullish MACD cross on the weekly chart.
In sum, this makes Amazon an intriguing stock to watch, especially on any pullbacks in price. Â Thanks for reading!
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No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
