Don't Ignore This Chart!

AMZN Awaiting Next Bullish Breakout

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Amazon.com (AMZN) continues to reach for the stars and if the current technical pattern plays out, it'll likely be much closer.  After soaring through price resistance in April to set a fresh all-time high on the heels of better-than-expected earnings, AMZN has been consolidating in a bullish continuation pattern - the cup with handle.  The handle is easier to see on a daily chart, which is not presented below.  But the cup is quite clear.  The good news for the bulls is that even if this pattern doesn't confirm and short-term price support is lost at the bottom of the cup, the April breakout above resistance should provide another solid layer of price support just above the 400 level.  Also note the rising 20 week EMA is currently at 404, providing further support.  Earnings will be out in the latter half of July, but traders appear to be anticipating solid results.  Check out the current technical picture:

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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