Trading Idea - Amazon Broke Resistance, What to Expect?

Published on Thursday, 02 September 2010 04:28 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Amazon.com, Inc. (NASDAQ:AMZN) closed the trading session at $132.49 just above calculated resistance at $130.81 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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.

Amazon's stock was trading in a well defined range with support at $122.25 and resistance at $130.81, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Amazon's stock is still near the broken resistance level, traders will be focusing on $130.81 to see if the stock holds the breakout without rolling over.