Amazon.com, Inc.'s (NASDAQ:AMZN) stock is at all-time highs yet technical favor is diminishing
Amazon.com, Inc. (NASDAQ:AMZN) is overdue for a stock retrace. Amazon is nearly 75% up since July, with a low of $105.80 up to $173.20 which is the new high that was set yesterday. However, four different technical factors agree that ‘AMZN’ is slated to retrace. Just one indication suggesting something may occur is mostly irrelevant, but once evidence begins to pile and look poised for a topple it is probably a good idea to step back and analyze the situation.
The first alarming, most significant indication of a retrace is the fact that MACD has lost momentum as share price has increased and is showing negative divergence in correlation to said share price. The second being that stochastic has not been oversold since the recent record-setting upswing from July, and is back in overbought territory.
Continuing on with the third observation, there is still a gap from the open of October 21st and if someone wants to be exceedingly particular they can point out the one from September 3rd as well. Fourth and last, on balance volume is showing that the buying power into Amazon’s stock is weakening and is losing momentum as Amazon share price increases.
This is not to suggest that shares of Amazon may retrace to any specified point, just that the stock has lost a portion of technical favor and is overdue. Author has no position in this financial security, if someone wondered. Look to the chart which can be enlarged to see the points of this article.
Amazon.com, Inc. (AMZN) offers services to consumers, sellers, and developers through its retail websites. It also manufactures and sells the Kindle e-reader. Amazon offers programs that enable sellers to sell their products on its websites and their own branded websites. Amazon.com serves developers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable any type of business.
The company has a market value of $76,500,377,362.50 with 447,825,000 shares outstanding. Overall, the trend of ‘AMZN’ remains bullish at this point in time.