Amazon Is Close to the 50 Day Moving Average

Published on Friday, 22 June 2012 08:40 Written by TradersHuddle Wire

New York, June 22nd (TradersHuddle.com) - Amazon.com, Inc. (NASDAQ:AMZN) closed the trading day at $220.58, near its 50 day moving average that is set at $213.48. Amazon's price action is just above this important support level, providing a trading opportunity.

Amazon.com, Inc. (NASDAQ:AMZN) operates as an online retailer worldwide. The company serves its consumer customers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable seller customers to sell their products on its Websites and their own branded Websites. One of the biggest seller items for Amazon is books and e-books, which can be read with Amazon's Kindle e-reader.

The peaks and troughs algorithm shows calculated support at $206.37 and calculated resistance at $225.20. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Amazon should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.