AMAZON.COM INC (NASDAQ:AMZN) - A Technical Breakout Candidate Worth Watching

AMAZON.COM INC (NASDAQ:AMZN) has been identified as a potential breakout candidate by our technical screening process. The stock shows a combination of solid technical health and a favorable setup pattern, making it an interesting opportunity for traders. Below, we break down the key factors supporting this view.

Technical Strength

AMZN currently holds a Technical Rating of 7, indicating a positive trend. Key observations from the technical report include:

• Both the short-term and long-term trends are positive, reinforcing bullish momentum.
• The stock is forming a bull flag pattern, often seen as a continuation signal after a strong upward move.
• Trading volume remains healthy, with an average of 51.2 million shares per day, ensuring liquidity.
• Relative strength is solid, outperforming 70% of stocks over the past year.

While AMZN has lagged the broader market slightly in recent months, the recent price action suggests renewed strength.

Setup Quality

With a Setup Rating of 8, AMZN presents a well-defined consolidation pattern:

• Prices have been consolidating in a tight range, reducing volatility and forming a clear support zone near $205.05.
• Resistance is visible around $205.72, with a breakout above this level potentially triggering further upside.
• The setup suggests a low-risk entry point, with a stop-loss level just below support at $199.17.
• The trade setup implies a 3.19% risk per position, making it manageable for disciplined traders.

This combination of technical strength and setup quality makes AMZN a compelling candidate for a breakout trade.

For more technical breakout opportunities, check our Technical Breakout Setups screener, updated daily.

Disclaimer

This is not investment advice. The analysis reflects observations at the time of writing, and market conditions can change rapidly. Always conduct your own research before making trading decisions.