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
