Stock of the day: Amazon
03 April 2023
Today, we have a short update about Amazon, which we previously analyzed on March 21st. Back then, the price was close to creating a proper buy signal from the handsome inverse head and shoulders pattern. This is how we concluded the previous piece:
“The pattern is there, but is not active yet. What we need for a technical buy signal is Amazon climbing above the green neckline around 102 USD…To increase the chances of a bullish success before going long, I would love to see Amazon breaking above the two red down trendlines. Chances of that happening are significant, especially with the latest switch to the risk ON mode on the market.”
The bullish counterattack at the end of last week allowed the price to break the neckline (green) of the iH&S formation. That is the activation of the iH&S pattern and the first step towards a buy signal. Now, the price is flirting with the first downtrend line, and chances for a breakout are quite significant. My view on Amazon is bullish.