Chart of the Day: Amazon's Stock Still Has Some Catching Up to Do
LIONEL BONAVENTURE/AFP/Getty
Action Alerts PLUS holding Amazon (AMZN) has clearly been a winning FANG name over the past few months. In fact, from the lows in late October the stock has made a bold move, up a robust 33%. That is a very large move for a mega cap name, a member of the trillion dollar club.
Over that time period the stock has added more than $500B of value, a truly remarkable number. The company reports earnings later this week, and if that 33% move higher is any indication we are likely to see very strong results.
But how will the stock fare? Will it be a sell the news situation? It's possible, but given the fact that Amazon is still well below all-time highs, we believe the stock still has some catching up to do. It was one of the best portfolio performers in 2023 and we could see that repeating in 2024.
Notice in the chart the GoNoGo indicator has blue candles. This composite of indicators is flashing a strong buy signal here, and we can see the confirmation from other indicators as well.
Money flow is still very strong while the MACD (moving average convergence divergence,) crossover buy signal is still in effect. Parabolic SAR (stop and reverse), in the top pane is also bullish and is good support in case of a selloff. The SAR tells us the change in trajectory of price before it actually occurs.
We like Amazon here and rate it a One in the AAP portfolio, which means buy at anytime (especially on a pullback).
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Action Alerts PLUS is long AMZN.