Technical Update - Amazon set to jump bullish out of range. Where to next?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Amazon jumped 11% after hours yesterday on back of better-than-expected earnings. If Amazon opens around the after market closing price at $136.58, it is jumping out of its sideways range between 101 and 126. The closing price is around the 0.50 retracement of the March-to May sell off as indicated on the chart, and more importantly, above the gap from April when sell off accelerated.
However, after the share price closed above 118 on 19th July and RSI closed above 60 threshold showing positive sentiment, indications of a likely uptrend in Amazon were there. Amazon just needed a close above 125.61 for confirmation. We seem to get that with today’s opening.
There could be more upside in Amazon, however. If Amazon doesn’t slide back below 130 next resistance is at around 144.60. A resistance that could prove to be strong with the 200 SMA coming down. I believe we will some consolidation around that level before next move.
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