Amazon stock has been trading lower for the most part of February and until May when prices appeared to have bottomed out. The stock price found support at $300/share and has since bounced to the 50 simple moving average, which has acted as dynamic resistance when the price was on a downtrend.
However, Amazon stock price broke through the SMA and consolidated around the $330/share mark. Earlier this week, price made a strong upside break by gapping higher and forming a long bullish candle, indicating that more gains could be in the cards.
Amazon Stock Outlook
Amazon stock has also made an upside break from the 200 SMA, which is a longer-term resistance for the pair. This confirms that an uptrend is likely to take place, along with the fact that prices also breached the neckline of the inverse head and shoulders pattern on the daily time frame.
This rally has been spurred by news that Google class creator Babak Parviz could move to Amazon to create wearable glass technology and other gadgets that might boost Amazon stock prices later on. “I founded and led a few efforts at Google (among them, Google Glass and Google Contact Lenses are public so far 🙂 prior to moving to Amazon and work on a few other things now,” Parviz posted on his Google+ profile.
“Babak made great contributions to the fields of computer science, optics and miniaturized electronics,” said a Google spokesperson in a statement. “We know he’ll do the same in his next endeavors and we wish him well.”
Amazon has not made any official statement on this transfer but it appears that traders are already pricing in positive expectations for the company, ahead of this week’s earnings releases.
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