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Technical Analysis – Amazon drops after reaching a 6-month high

Amazon 25/04/19 | EconAlerts

Amazon has been creating higher highs and higher lows after the rebound on the 1305 support level, jumping to a fresh six-month high of 1928 on April 23. Chances for a downside reversal, however, are increasing as the RSI indicator dropped below the overbought territory and the stochastic oscillator posted a bearish crossover within the %K and %D lines.

Another step lower may reach a key support at the 20-simple moving average (SMA) currently at 1867, marginally above the 1852 support. Should this prove a weak obstacle, the selling could pick up speed until the 40-SMA around 1838 and the 1816 barrier, which stands near the ascending trend line. A drop below these levels could switch the bullish outlook to neutral.

On the flipside, if prices climb above the six-month high, it could open the way towards the 2033 resistance, identified by the peak on October 2018.

In the medium-term view, the stock price is still increasingly bullish as long as it has been holding above the uptrend line since December 2018. Only a close below the diagonal line may change this outlook.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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