In this article we take a closer look at Amazon.com, Inc. (AMZN) and provide insights into different technical analysis metrics such as Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands, Stochastic Slow Strategy, and Pivot Extension Strategy.
Before diving into the technical analysis metrics, let’s have a look at the price data you provided. The stock price of Amazon Inc. on May 3, 2023, opened at $103.74, and closed at $105.96, with the highest price of $103.28 and the lowest price of $103.65. The adjusted close price was also $103.65, and the trading volume for the day was 64,940,500.
Now, let’s look at the different technical analysis metrics:
- Moving Average Convergence Divergence (MACD): MACD is a trend-following momentum indicator that shows the relationship between two moving averages of the stock price. The MACD for Amazon Inc. is currently positive, indicating a bullish signal. However, it is important to note that the MACD has been decreasing in the recent past, which could indicate a possible trend reversal.
- Relative Strength Index (RSI): RSI is a momentum oscillator that measures the speed and change of price movements. The RSI for Amazon Inc. is currently at 55.22, which is a neutral signal. The RSI has been fluctuating in the neutral zone for the past few weeks, indicating a lack of strong momentum in the stock price.
- Bollinger Bands: Bollinger Bands are a volatility indicator that consists of three lines: the moving average, the upper band, and the lower band. The upper and lower bands are plotted two standard deviations away from the moving average. The Bollinger Bands for Amazon Inc. indicate that the stock price is currently trading within the bands, which is a neutral signal. However, it is important to note that the bands are narrowing, which could indicate a possible breakout.
- Stochastic Slow Strategy: Stochastic Slow is a momentum indicator that compares the closing price of a stock to its price range over a given time period. The Stochastic Slow for Amazon Inc. is currently at 60.15, which is a neutral signal. The Stochastic Slow has been fluctuating in the neutral zone for the past few weeks, indicating a lack of strong momentum in the stock price.
- Pivot Extension Strategy: Pivot Extension is a trend-following indicator that helps identify key levels of support and resistance. The Pivot Extension for Amazon Inc. indicates that the stock price is currently trading above the pivot point, which is a bullish signal. The next level of resistance is at $107.35, while the next level of support is at $101.69.
Based on the above technical analysis metrics, we can conclude that the stock price of Amazon Inc. is currently in a neutral zone. However, the narrowing of the Bollinger Bands could indicate a possible breakout in the future. It is also important to note that the MACD has been decreasing in the recent past, which could indicate a possible trend reversal. As for entry and exit points, investors could look to enter the market at the support level of $101.69 and exit the market at the resistance level of $107.35.
Please note that the above analysis is for informational purposes only and should not be taken as financial advice. It is important to conduct thorough research and consult with a financial advisor before making any investment decisions.
