Amazon.com Inc. (NASDAQ: AMZN) traded in a consolidative manner this week, staying slightly below the 3190 barrier. The broader picture also suggests a trendless outlook, at least in the short run, with the stock oscillating between 3070 and 3250 since November 11th. Therefore, we will adopt a neutral stance for now.
In order to start examining higher areas, we would like to see a decisive break above the upper end of the aforementioned range, at 3250. Such a move would confirm a forthcoming higher high on the daily chart and may pave the way towards the peak of November 5th, at 3367, or the high of October 16th, at 3400. If those areas are not strong enough to halt the advance, we may see extensions towards the 3500 territory, defined as a resistance by the high of October 12th.
Shifting attention to our short-term oscillators, we see that the RSI has recently rebounded from near its 50 line, but has just turned flat, while the MACD, although above its trigger line, is still fractionally below zero. Both indicators suggest that the stock may start gathering upside speed soon, but the fact that the RSI is flat and that the MACD is negative, adds more credence to our choice of staying sidelined until the stock exits the aforementioned range.
On the downside, we would like to see a strong dip below 3070 before we start examining decent declines. Such a move would confirm a forthcoming lower low and may initially target the low of November 10th, at 3017. If that barrier is broken as well, then the next stop may be at 2950, marked by the low of November 2nd. Another dip, below 2950, may extend the fall towards the low of September 21st, at 2870.
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