Can $AMZN deliver a Santa rally? – December 15, 2023
This is Scott with your Chart of the Day. I want to bring your attention back, to Amazon ( NASDAQ: AMZN ).
I don’t know about you, but I am sure doing a lot of shopping on Amazon ( NASDAQ: AMZN ) so I don’t know why the stock isn’t ripping right now. I definitely think it is one that we need to keep an eye on. It has, really, just delivered a nice sideways base of consolidation over the past month or so.
While we are all buying, Amazon ( NASDAQ: AMZN ) is basing. And it is, actually, basing near a previous stock battle zone, as I like to call it. Where price had some volatility before back here, in the first quarter of 2022, just before it broke down. So we are just testing the underside of that previous support, it is now current resistance.
So I definitely want to see if Amazon ( NASDAQ: AMZN ) can break above this 150.00 level and do it on volume. If I bring in Bollinger Bands, what you will see is, the Bollinger Bands are pinching. The Bollinger Bands are coming closer and closer together. All that really represents is just tighter and tighter price action.
Back to my main layout here, nice tight price action, pretty clear resistance, and if I back up you can see this is a definite battle zone, but the stock needs some volume to break through. So, I would look for a strong move through that 150.70 level, coming on volume, as a trigger to potentially buy the stock.
Now, I think you could definitely own this stock right here, right now, as the 21-day is definitely holding as support. So you have a clear line of support in the sand, with that 21-day EMA. But if you are looking for the breakout, and don’t want to sit through more consolidation. I think that 150.70 level, or just below, is pretty clear.
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