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Technical Insights for AMAZON.COM INC (NASDAQ:AMZN): Is a Breakout Imminent?

By Mill Chart

Last update: May 16, 2024

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.

AMZN Daily chart on 2024-05-16

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, AMZN scores 10 out of 10 in our technical rating. 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 short term is neutral, but the long term trend is still positive. Not much to worry about for now.
  • When comparing the yearly performance of all stocks, we notice that AMZN is one of the better performing stocks in the market, outperforming 89% of all stocks. On top of that, AMZN also shows a nice and consistent pattern of rising prices.
  • AMZN is part of the Broadline Retail industry. There are 33 other stocks in this industry. AMZN outperforms 75% of them.
  • 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.

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

How does the Setup look for NASDAQ:AMZN

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:AMZN has a 8 as its setup rating, indicating its current consolidation status.

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. 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 187.30. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 182.42, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Disclaimer

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.

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AMAZON.COM INC

NASDAQ:AMZN (5/24/2024, 7:13:54 PM)

After market: 181.07 +0.32 (+0.18%)

180.75

-0.3 (-0.17%)

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