Traders Take Note: Amazon.com Inc (NASDAQ:AMZN) Stock Drops, Weakness in Technical Momentum
(AMZN Price of Stock at Publication: $1571.68)
Take Note: Amazon.com Inc (NASDAQ:AMZN) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and technical oscillators for any kind of momentum gaps.
The company has a two bull momentum rating which indicates weakness -- but not a full scale breakdown. There can be a contrarian urge to enter a new long position as the stock drops, but as of this moment, the stock price is moving lower and may yet weaken further. If a reversal becomes apparent, waiting for that strength in the technicals may be more prudent than jumping in as the stock drops.
AMZN is up +33.3% over the last three months and up +59.3% over the last six months. The stock price is up +84.4% over the last year. The current stock price is $1571.68.
AMZN Stock Returns
Technicals | Support: 1523.61 | Resistance: 1598.39
Golden Cross Alert: The 50 day MA is now above the 200 day moving average.
As we noted above -- the back of the envelope rule here is that when shorter-term moving averages move above the longer-term ones, momentum is building. We have that right now.
Swing Golden Cross Alert: The short-term 10 day moving average is now above the 50 day moving average.
When the shortest-term moving average (10-day in this case) moves above any other moving average (50-day in this case), momentum is climbing.
The pivot points and momentum reign here: Amazon.com Inc has a two bull (momentum weakness) technical rating because even though the stock is trading above its 10-, 50-and 200- day simple moving averages, the stock is down big on the day. We do note that the 10 day moving average is above the 50 day moving average (also called a "swing golden cross").
We now turn to the actual numbers driving this rating:
Amazon.com Inc (NASDAQ:AMZN) rating statistics:
10-day moving average: $1,566.86
50-day moving average: $1,423.26
200-day moving average: $1,132.84