Amazon.com (AMZN) Pullback Offers Incredible Opportunity


 
 
08:49 10/13/2018

Amazon.com AMZN  is excessively oversold. In fact, the last two times the stock was this oversold it bounced back more than $500. And if we’re right, it could happen again, especially as we near the holiday season. Notice what happens each time AMZN tests its lower Bollinger Band (2,20). Not long after it begins to pivot higher. Now look at what happens when Relative Strength (RSI) falls to or below its 30-line with an extreme drop on MACD, and a pullback to less than 80 on Williams. About 80% of the time, the stock bounces back in a big way. In late March 2018, it bounced from about $1,350 to $1,788. In August 2017, it bounced from $1,000 to $1,500. Now with Bollinger Bands, RSI, MACD and W%R in alignment again, we believe the stock could refill its bearish gap around $2,000. From there, we believe AMZN could move to $2,500.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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