All trading involves risk. Ensure you understand those risks before trading.
Open account
☰
All trading involves risk. Ensure you understand those risks before trading.
Open account
✖

US Stock Focus Amazon rebounded from key medium term support

Article By: ,  Financial Analyst
September 8, 2017 10:00 AM

Medium-term technical outlook on Amazon.com (AMZN)


Key technical elements

  • The recent decline of 13% from its current all-time high of 1083.31 printed on 27 July 2017 has managed to stall at a key medium-term support of 936.30.
  • The aforementioned key medium-term support of 936.30 is defined by the lower boundary of the ascending channel in place since 14 November 2016 low and the 38.2% Fibonacci retracement of the on-going multi-month uptrend in place since 14 November 2016 low to 27 July 2017 high.
  • The daily RSI oscillator has managed to inch up from its corresponding support at the 45% level after it posted a bullish divergence signal. In addition, it still has further potential upside before it reaches an extreme overbought level. These observations suggest that medium-term upside momentum of price action remains intact.
  • The next significant resistance stands at 1167.00 which is defined by the upper boundary of the medium-term ascending channel in place since 14 November 2016 low and the 0.618 Fibonacci projection of the up move from 09 February 2016 low to 06 October 2016 high projected from 14 November 2016 low.

Key levels (1 to 3 months)

Intermediate support: 960.60

Pivot (key support): 936.30

Resistances: 1083.31 & 1167

Next support: 856.40/847.20

Conclusion

Therefore, as long as the 936.30 key medium-term pivotal support holds, Amazon may resume its bullish impulsive upleg within its on-going medium-term uptrend in place since 14 November 2016 low to retest its current all-time high level of 1083.31. A break above 1083.31 opens up scope for a further potential up move to target the next resistance at 1167.

On the other hand, failure to hold above 936.30 is likely to put the medium-term uptrend in jeopardy for a deeper corrective decline towards the next support at 856.40/847.20 (the former swing high area of 06 Oct 2016).

Chart is from eSignal

Disclaimer

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.



From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

© City Index 2024