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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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