Does AMZN need Jeff Bazos back?

1/24/2023

Looking at the share price, Spaceman Jeff may have left the Amazon (AMZN) CEO chair at the best time…

…down -32.72% over the last year.

(Source: tenor.com)

Alright, I know, the entire market has been down… Forgive me, Andy Jassy.
Does that mean it’s time to buy?
That depends on your time horizon and expectations.
But in the near future, this is what I’d look at on Amazon (AMZN):
We’re digging into the daily chart.
I’ve sprinkled in some noteworthy aspects of the weekly chart, but being that the market’s direction is undecided, the daily is the true focus.
The biggest reason? Earnings!
Let’s break it down…

With this bottomed out look, this should be a simple trade idea.

But I’d still be cautious given how shaky the economic climate is…

The stock just bounced off an area of weekly support and has plenty more underneath it.

Adding to this, it was just last week that the share price moved above the shorter term moving averages, namely, the 8, 13, and 21ema’s (orange, red, green, respectively.)

For swing traders, that’s a reasonably bullish sign…

But let’s look at the gaps.

We’ve got a massive area to be filled on the upside, although there are a couple sprinkled in below as well… And this is why I recommend caution.

The momentum is slightly to the upside with both the TTM Squeeze momentum indicator showing blue bars, meaning we’re on the up and up.

However, the Stochastic below it looks weak — still bullish, but the crossover says weak.

Still, if I’m targeting higher, I’d look no further than the 200ema (green) pointed out on the chart which happens to line up with the gaps I mentioned.

To the downside, fill the gaps.

With earnings on the way, it’s risky… Good luck.

Keep moving,

(Disclosure: I hold no positions in AMZN.)

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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