The Nasdaq-100’s sharp pullback last week brought all kinds of solid names back to earth. And one of the most prominent is Amazon.com.
Jeff Bezos’ e-commerce giant triggered some alerts on TradeStation yesterday and Friday after dipping down to test its 50-day simple moving average (SMA). This provides a fairly straightforward momentum setup.
AMZN is also holding the top of a bullish triangle around $3,250, which it broke three weeks ago.
Next, stochastics show an oversold condition.
Finally there are some potentially bullish fundamental considerations. One is limited exposure to China – unlike chipmakers or Apple. That may reduce its risk given the political backdrop into November.
Second, AMZN has the highest share price in the Nasdaq-100 and the second highest in the S&P 500 (after homebuilder NVR). Tesla and AAPL just delivered stock splits. Will AMZN follow?
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.