Amazon Stock It is time once again to take a look at Amazon.com, Inc. (NASDAQ:AMZN) stock to see what the indications on the company’s stock chart are suggesting.

Amazon Stock Is Still Primed for Higher Stock Prices

AMZN Stock: Testing Support

Amazon Stock It is time once again to take a look at Amazon.com, Inc. <span data-recalc-dims=(NASDAQ:AMZN) stock to see what the indications on the company’s stock chart are suggesting." width="300" height="216" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/06/AMZN-Stock-Testing-Support-300x216-Small.jpg?resize=300%2C216 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/06/AMZN-Stock-Testing-Support-300x216-Small.jpg?w=667 667w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESSTORS Amazon Stock It is time once again to take a look at Amazon.com, Inc. (NASDAQ:AMZN) stock to see what the indications on the company’s stock chart are suggesting.

The target I outlined in my last publication about this company, “The Next Stop for Amazon Stock Is $1000,” has come to fruition as AMZN stock just attained this level on June 2. The magnitude of that publication is multiplied by the fact that this price target was derived in February 2017, when Amazon shares were trading at $842.70.

The following Amazon stock chart illustrates the indications that have been supporting the advance in this investment.




Amazon Stock 

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There are two distinct indications that are highlighted on the chart above that are both acting as a level of price support.

The first indication is an uptrend line, and this technical tool is created by drawing a trend line that connects the significant lows that occurred over this time frame. This simple tool effectively defined the trend that has been in force since early 2015. This trend that has been dominated by higher highs and higher lows creates the quintessential stock chart we have all come know. A chart that begins in the lower left and travels to the upper right.

The uptrend line has been acting as a level of price support, and this aspect has been especially true since late last year where this trend line was tested on numerous occasions. On each of these occasions, buyers were eager to step in and support this trend line. As long as the share price is trading above this technical tool, I will have all the reason to believe that the bullish trend is set to continue.

This simple tool can also be used to define the risk in this investment. If the share price should ever close below this uptrend line, I will have all the reason I need to believe that a larger correction is set to ensue, which would warrant exiting a long position or establishing a short position.

The second indication is the 50-day moving average. This tool is created by averaging the daily closing price over the past 50 trading days, and plotting this value on the stock chart. The 50-day moving average is used to gauge the health of an investment by pinpointing where it is trading in relation to this moving average. Trading above the 50-day moving average suggests the trend is healthy and accelerating. An accelerated trend is a characteristic of an investment that is being accumulated by investors.

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