Based on good technical signals, AMAZON.COM INC is potentially setting up for a breakout.

A possible breakout setup was detected on AMAZON.COM INC (NASDAQ:AMZN) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:AMZN.

What is the technical picture of NASDAQ:AMZN telling us.

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.

Overall AMZN gets a technical rating of 7 out of 10. Although AMZN is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• AMZN is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so AMZN is leading the market.
• Looking at the yearly performance, AMZN did better than 79% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• AMZN is part of the Broadline Retail industry. There are 34 other stocks in this industry, AMZN did better than 66% of them.
• In the last month AMZN has a been trading in the 130.58 - 141.28 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of AMZN for a complete technical analysis.

Why is NASDAQ:AMZN a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:AMZN scores a 8 out of 10:

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 137.08, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AMZN in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:AMZN

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.