Amazon.com Inc. (NASDAQ: AMZN) has been hovering around the $218 mark, following a pullback from its recent record high of $233 on December 16. However, the stock may be poised for a rebound, supported by a historically bullish trend.
Key Moving Average Signal
According to Schaeffer’s Senior Quantitative Analyst, Rocky White, Amazon is approaching its 50-day moving average after spending a significant amount of time above it—approximately 80% of the time over the past two months and in 8 of the last 10 trading days. This pattern has occurred five times in the past three years, and each time, the stock was higher one month later, with an average gain of 5.2%.
RSI Points to Potential Bounce
Additionally, Amazon’s 14-day relative strength index (RSI) currently stands at 37.9, nearing the “oversold” level. This suggests that the stock could experience a short-term bounce in the near future.
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