Amazon's strong quarterly figures were convincing, and the stock consequently shot up. But will the rise be sustainable?
A look at one of the most important technical indicators gives little hope: The strong inverse bearish divergence in the CumulativeDelta suggests that Amazon stock will soon correct significantly.
I am not giving a price target here, as the divergence is still building. However, it can be said that the short side is clearly to be preferred in Amazon as soon as a corresponding reversal formation appears.