AMAZON.COM INC (NASDAQ:AMZN) showing some interesting technicals. Here's why.

Our stock screener has spotted AMAZON.COM INC (NASDAQ:AMZN) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:AMZN.

Deciphering the Technical Picture of NASDAQ:AMZN

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to AMZN. Both in the recent history as in the last year, AMZN has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that AMZN is one of the better performing stocks in the market, outperforming 94% 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 84% of 34 stocks in the same industry.
• 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.
• In the last month AMZN has a been trading in the 118.35 - 147.29 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of AMZN contains the most current technical analsysis.

How does the Setup look for NASDAQ:AMZN

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:AMZN is 8:

Besides having an excellent technical rating, AMZN also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 145.19. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 144.85, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

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.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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

Disclaimer

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.