Explanation to Bollinger's Bands

Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.

Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.

Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation

BandWidth defines the current width of the band.
%b defines the current position within the band.

BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)

Live Samples:

Bollinger Bottleneck Buy Pattern 1
Bollinger Bottleneck Buy Pattern 2
Bollinger Bottleneck Sell Pattern

Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.

Source: http://www.bollingerbands.com

RSI low/high Values: [ 25 - 75 ]
* StockInvest.us uses dynamically calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behavior.
AI Analysis of AMZN
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Amazon stock upgraded from Buy Candidate to Strong Buy Candidate after Wednesday trading session.
(Updated on Mar 27, 2024)

Buy or Hold candidate since Jan 08, 2024 Gain 20.61% PDF

The Amazon stock price gained 0.86% on the last trading day (Wednesday, 27th Mar 2024), rising from $178.30 to $179.83. During the last trading day the stock fluctuated 1.52% from a day low at $177.31 to a day high of $180.00. The price has risen in 7 of the last 10 days and is up by 1.85% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 million more shares were traded than the day before. In total, 30 million shares were bought and sold for approximately $5.47 billion.

The stock lies in the middle of a strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 21.32% during the next 3 months and, with a 90% probability hold a price between $213.67 and $233.13 at the end of this 3-month period.

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AMZN Signals & Forecast

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 $178.42 and $174.45. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, March 11, 2024, and so far it has risen 4.58%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Support, Risk & Stop-loss for Amazon stock

Amazon finds support from accumulated volume at $174.42 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $2.69 between high and low, or 1.52%. For the last week the stock has had daily average volatility of 1.65%.

Our recommended stop-loss: $170.57 (-5.15%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 12 days ago.)

Trading Expectations (AMZN) For The Upcoming Trading Day Of Thursday 28th

For the upcoming trading day on Thursday, 28th we expect Amazon.com, Inc. to open at $179.05, and during the day (based on 14 day Average True Range), to move between $176.51 and $183.15, which gives a possible trading interval of +/-$3.32 (+/-1.85%) up or down from last closing price. If Amazon.com, Inc. takes out the full calculated possible swing range there will be an estimated 3.69% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $174.42, some $5.41 (3.01%) from the current price of $179.83, our system finds the risk reward attractive.

Is Amazon.com, Inc. stock A Buy?

Amazon holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 6.574 Strong Buy Candidate Upgraded

Predicted Opening Price for Amazon.com, Inc. of Thursday, March 28, 2024

Fair opening price March 28, 2024 Current price
$179.05 ( 0.436%) $179.83

The predicted opening price is based on yesterday's movements between high, low, and closing price.

Trading levels for AMZN

Fibonacci Support & Resistance Levels

Level Price
Resistance R3 181.74 1.06 %
R2 180.71 0.489 %
R1 180.07 0.136 %
Current price: 179.83
Support S1 178.02 -1.01 %
S2 177.38 -1.36 %
S3 176.36 -1.93 %

Accumulated Volume Support & Resistance Levels

Level Price
Resistance R3 0 .
R2 0 .
R1 0 .
Current price 179.83
Support S1 174.42 -3.01%
S2 171.81 -4.46%
S3 159.28 -11.43%

FAQ

What is the symbol for Amazon Stock and on which exchange is it traded?
The symbol for Amazon is AMZN and it is traded on the NASDAQ (NASDAQ Stock Exchange).

Should I buy or sell Amazon Stock?
Amazon holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

How to buy Amazon Stock?
Amazon Stock can be purchased through just about any brokerage firm, including online brokerage services.
Click here for our free guide on how to buy Amazon Stock.

What's the current price of Amazon Stock?
As of the end of day on the 2024-03-27, the price of an Amazon (AMZN) share was $179.83.

What is the 52-week high and low for Amazon Stock?
The 52-week high for Amazon Stock is $181.42 and the 52-week low is $96.29.

What is the market capitalization of Amazon Stock?
As of the 2024-03-27, the market capitalization of Amazon is 1.852T.

When is the next earnings date for Amazon?
The upcoming earnings date for Amazon is Apr 25, 2024.
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About Amazon.com, Inc.

Amazon Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings,... AMZN Profile

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