On its daily chart, Amazon (AMZN) stock is showing selloff chart signals as the pair recently found resistance on the 50 SMA (simple moving average). This suggests that the stock’s recent uptrend is already over and that a selloff might take place in the longer run.
However, MACD oscillator is showing that a bounce is still possible. After all, the stock price is finding support at the 200 SMA and this might act as a floor for the latest selloff. The oscillator has reached the oversold zone and might be due for a climb if it shows chart signals of crossing upwards.
Downtrend Chart Signals
Note however, that price has gapped down recently and that the stock hasn’t filled this gap yet. This could reflect that sellers are very strong and that selling momentum is still building for Amazon.
Upcoming technologies for the company could change all that though, as the tech giant is set to introduce its Fire TV. Kindle sales and books have been plummeting though. Fire TV is set to compete with Apple’s Apple TV and Google’s Chromecast, and it would also give users access to Netflix.
The Fire TV is set to have a quad-core processor, which would boast of high quality and good technical specifications. It would have four times the memory of the current technology competition, promising to drive Amazon stock higher.
With that AMZN stock chart signals might show a start of an uptrend at least in the shorter-term time frames. Do take note though that Amazon Prime has failed to gain traction in the consumer market, as existing technologies have already taken over majority of the share. Analysts have ranked AMZN share in the sell category, as there has been no signs of upward momentum lately.
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