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.

Deciphering the Technical Picture of NASDAQ:AMZN

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall AMZN gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, AMZN is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, AMZN did better than 94% of all other stocks. We also observe that the gains produced by AMZN over the past year are nicely spread over this period.
• AMZN is one of the better performing stocks in the Broadline Retail industry, it outperforms 87% 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 however is also trading near new highs, which makes the performance in line with the market.
• AMZN is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

How does the Setup look for NASDAQ:AMZN

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:AMZN exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

AMZN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 147.04. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 146.29, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:AMZN

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

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.

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.