Amazon.com, Inc. (AMZN) released its quarterly earnings yesterday after the bell. Although the price of AMZN is higher than the preferred range of most of our readers, the chart analysis of AMZN can still be very educational for traders.
Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca. The company serves consumers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on company's websites, and their own branded Websites. In addition, the company serves developers and enterprises through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. Further, it manufactures and sells the Kindle e-reader. Additionally, the company provides fulfillment services; miscellaneous marketing and promotional agreements, such as online advertising; and co-branded credit cards. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
To review Amazon's stock, please take a look at the 1-year chart of AMZN (Amazon.com, Inc.) below with my added notations:
MZN has created a couple of short-term price levels over the last (3) months. First, AMZN has formed a clear resistance level at $230 (navy). In addition, the stock has also been forming an uptrending support level (blue). These two levels combined have AMZN stuck within a common chart pattern known as an Ascending Triangle that will eventually have to break one way or another. Will their earnings report give AMZN the push it needs to break higher, or lower?
The Tale of the Tape: AMZN is currently stuck between its uptrending support and the $230 resistance. A long trade could be made on a break above $230. On the other side, you could enter a short trade on AMZN if the stock breaks below the uptrending support level.
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