We reviewed Amazon.com Inc. (AMZN) just the other day, but it is our Real MoneyStock of Day so another look at the charts is in order.
Prices reacted lower Thursday evening as weaker-than-expected guidance overshadowed a big earnings beat.
In the daily Japanese candlestick chart of Action Alerts PLUS holding AMZN, below, we can see the early price action for this Friday. Prices have opened with a gap to the downside but this is just a "common" gap as it appears in a sideways consolidation pattern. If the gap appeared in an up or down trend it would have more importance. So far Friday's decline has not broken the flat 50-day moving average line. We don't know where prices will close so the movement of the OBV line is unknown for now and so is the Moving Average Convergence Divergence (MACD) oscillator.
In this updated Point and Figure chart of AMZN, below, we can see Friday's decline with a column of "O's" starting with the number "2" to mark the first entry of February, the second month of the calendar year. Prices have not made a new low below $1595.62 and the software is still indicating an upside price target of $2,007.
Bottom-line strategy: We do not know what Friday afternoon will bring and we do not know what will happen on Monday, but for now the charts of AMZN are still OK.
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Action Alerts PLUS, which Jim Cramer manages as a charitable trust, is long AMZN.