AMZN breaks back above 50-day moving average
Amazon.com Inc. (AMZN) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMZN finished Tuesday at 3286.33 gaining $79.29 (2.47%), notably outperforming the Nasdaq 100 (0.82%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 3282.98, the share confirmed its breakout through the prior session high after trading up to $8.34 above it intraday.
Daily Candlestick Chart (AMZN as at Oct 27, 2020):
Tuesday's trading range has been $80.02 (2.48%), that's slightly below the last trading month's daily average range of $93.78. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMZN.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 50-day moving average at 3230.85 for the first time since October 16th. When this moving average was crossed above the last time on October 9th, AMZN gained 4.75% on the following trading day. Prices are trading close to the key technical resistance level at 3320.00 (R1). After having been unable to move above 3282.98 in the previous session, Amazon. com ran into sellers again around the same price level today, missing to move higher than 3291.32.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Amazon. com. Out of 80 times, AMZN closed higher 55.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 68.75% with an average market move of 2.70%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 2.23% and AAPL closing 1.35% higher. None of the markets ended the day in the red. Read more