The question on everyone's mind: Will AMAZON.COM INC breakout?

AMAZON.COM INC (NASDAQ:AMZN) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:AMZN.

Insights from Technical Analysis

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.

Taking everything into account, AMZN scores 10 out of 10 in our technical rating. 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, AMZN did better than 92% of all other 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 81% of 33 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 166.32 - 189.77 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

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

How do we evaluate the setup for NASDAQ:AMZN?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:AMZN this score is currently 8:

AMZN has an excellent technical rating and 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 186.22. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 181.33, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:AMZN be traded?

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.

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

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.