AMAZON.COM INC is setting up nicely for a breakout.

Our stockscreener has identified a possible breakout setup on AMAZON.COM INC (NASDAQ:AMZN). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:AMZN for potential opportunities.

In-Depth Technical Analysis of NASDAQ:AMZN

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to AMZN. In the last year, AMZN was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that AMZN is one of the better performing stocks in the market, outperforming 79% of all stocks. On top of that, AMZN also shows a nice and consistent pattern of rising prices.
• AMZN is one of the better performing stocks in the Broadline Retail industry, it outperforms 74% of 32 stocks in the same industry.
• AMZN is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so AMZN is lagging the market slightly.
• In the last month AMZN has a been trading in the 180.25 - 191.52 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

For an up to date full technical analysis you can check the technical report of AMZN

Why is NASDAQ:AMZN a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:AMZN currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 189.05. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 187.78, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:AMZN?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.