Trading Idea: Is Amazon Breaking Out?
Published on Friday, 17 August 2012 08:36 Written by TradersHuddle Wire
New York, August 17th (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) closed the session at $241.55 just above calculated resistance at $240.74. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
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 stock was trading in a well defined range with support at $228.66 and resistance at $240.74. Given that this range was broken, traders will be closely monitoring Amazon's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Amazon is still near the broken resistance level, traders will be focusing on the $240.74 level to see if the stock holds the breakout without rolling over.
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