$AMZN TOP 20
Added 2023-04-22 22:06:45 +0000 UTCWe spoke last week that this was in a good position to benefit from $AAPL and $MSFT and the other mega cap stocks, as they have all looked extended and $AMZN was still comfortably within the RSI middle range. It has stayed above the 50 Day MA but just below the 200 Day MA at $107.
Earnings will be on this Thursday coming after hours, it had a negative earnings previously, so it is up to $AMZN now to turn this around, a positive earnings and this will go above the 200 Day MA, the red trend line and into the bull case.
My concern now is that after a good 2 weeks, the RSI is at 70 now.
So What Now?
So far, the 200 Day MA is being tested, if the 200 Day MA can move from a resistance level to a support level, and then price stays above the $107 level, this is in a strong position to move up the impulse wave, the structure is looking very good but we have seen this plenty of times leading up to earnings, a lot will come down to the earnings but if it is positive, this will move to the upside....a negative earnings and this will come down.
Comments
Gareth, something came to my mind in regards to the RSI that you may want to clarify for newer subs to trading and that is that RSI can stay overbought for a long time. Just wanted to mention that due to your wording of RSI being 70. Some may not realize that just because it hit 70 it doesn't mean that it can continue appreciating. Here is one example for a different stock: https://stockcharts.com/h-sc/ui?s=RIG
Steve Suric
2023-04-23 00:09:32 +0000 UTC
