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Amazon stock price up 1.34% on Monday

StockInvest.us, 1 month ago

Amazon

The Amazon stock price gained 1.34% on the last trading day (Monday, 29th Jan 2024), rising from $159.12 to $161.26. It has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 1.50% from a day low at $158.90 to a day high of $161.29. The price has risen in 7 of the last 10 days and is up by 4.29% over the past 2 weeks. Volume fell on the last day by -7 million shares and in total, 42 million shares were bought and sold for approximately $6.83 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

On Jan 22, 2024, it was reported that Benchmark gave AMZN a "Buy" grade with a "hold" action.

The stock lies in the upper part of a strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $162.20 will firstly indicate a stronger rate of rising.Given the current short-term trend, the stock is expected to rise 12.77% during the next 3 months and, with a 90% probability hold a price between $168.47 and $182.92 at the end of this 3-month period.

Amazon

The Amazon stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $157.31 and $152.14. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, January 04, 2024, and so far it has risen 11.54%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

On the downside, the stock finds support just below today's level from accumulated volume at $149.97 and $147.42.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Amazon finds support just below today's level at $149.97. If this is broken, then the next support from accumulated volume will be at $147.42 and $146.88.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $2.39 (1.50%) between high and low. For the last week, the stock has had daily average volatility of 1.72%.

The Amazon stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Amazon holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Check full Amazon forecast and analysis here.