Amazon - Double bottom on the Nasdaq 100 index and AMZN too?
Yesterday, Amazon broke above resistance at 3 276.69 USD. This is a particularly bullish development for the stock and it strengthens the case for uptrend revival. On 24th January 2022, AMZN marked a low of 2 707.04 USD. Then on 8th March 2022, AMZN saw another low of 2 671.45 USD. These two lows are resemblant to the double bottom formation which is a trend reversal pattern. Since the second low was formed, technical indicators have improved for Amazon. Indeed, on the daily time frame, they turned bullish. Currently, this time frame points to more upside for AMZN. Because of that, we would like to set a new price target for AMZN to 3 500 USD.
Illustration 1.01
The picture above shows the daily time frame of Amazon stock. It also shows two recent bullish breakouts.
Technical analysis - daily time frame
RSI is bullish. The same applies to Stochastic and MACD. Indeed, just recently, MACD performed a bullish crossover above 0 points; that is very bullish. DM+ and DM- point to bullish conditions in the market. However, ADX declines; that suggests that the prevailing trend is turning neutral. Overall, the daily time frame is bullish. Although, relatively weak ADX might translate to sideways moving price action in the short term.
Technical analysis - weekly time frame
RSI and Stochastic are bullish. MACD is due to perform crossover above 0 points. If it manages to do so, then it is going to bolster a bullish case for AMZN even more. DM+ and DM- are still bearish. ADX declines which suggests that the prior bearish trend is losing momentum. Overall, the weekly time frame is neutral.
Illustration 1.02
Double bottom resemblance can be found also on NQ1! (Nasdaq continuous futures).
Support and resistance
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering a trade.
Illustration 1.01
The picture above shows the daily time frame of Amazon stock. It also shows two recent bullish breakouts.
Technical analysis - daily time frame
RSI is bullish. The same applies to Stochastic and MACD. Indeed, just recently, MACD performed a bullish crossover above 0 points; that is very bullish. DM+ and DM- point to bullish conditions in the market. However, ADX declines; that suggests that the prevailing trend is turning neutral. Overall, the daily time frame is bullish. Although, relatively weak ADX might translate to sideways moving price action in the short term.
Technical analysis - weekly time frame
RSI and Stochastic are bullish. MACD is due to perform crossover above 0 points. If it manages to do so, then it is going to bolster a bullish case for AMZN even more. DM+ and DM- are still bearish. ADX declines which suggests that the prior bearish trend is losing momentum. Overall, the weekly time frame is neutral.
Illustration 1.02
Double bottom resemblance can be found also on NQ1! (Nasdaq continuous futures).
Support and resistance
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering a trade.
Feragatname
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