Some Say Amazon (AMZN) Has Still Not Bottomed Out Yet
We all heard the news when Jeff Bezos briefly became the richest man in the world. Amazon’s stock price soared to highs of 1,83.31 but that moment didn’t last too long as the stock sharply retreated. Why the drop? Well the company failed to report any kind of jaw dropping second quarter earnings, for one. Maybe Bezos should have spent some of that wealth on buying products from Amazon.com (I joke).
But analysts are saying that the run for Amazon may be far from over in 2017. Over the last few days, shares of the near five hundred billion dollar company have been trading in a range around $950 per share. But this isn’t a new pattern for Amazon. Anyone can look back at a chart and see that even since last November, Amazon has shown a trend of moving up and than pulling back to levels that are slightly higher than where it had jumped from previously.
Amazon has been able to bounce its way to new highs over the last 9 months. So this trend has many people watching to see if it once again holds true. Technically speaking, waiting for a “support line” test could offer the highest amount of potential when tracking price action. Then, when you bring in relative strength indicators to further support a trading thesis, it can add more confidence to making the right decision for stocks like Amazon.
But remember, it’s all about risk management. We aren’t talking about a penny stock here. We’re talking about a company whose market value is larger than some countries’ GDPs. Holding tight stops and waiting for proper entry points is critical to taking advantage of a pull-back if it results in the stock rebounding in the future. In the end, the choice is up to you whether you’re going to buy a stock or sell a stock in the open market.