Amazon.com, Inc. (NASDAQ:AMZN) has had a very wild ride recently after reporting earnings on July 22nd. The stock sold off sharply into the $100.00 range after the earnings announcement and rebounded right back up to the $118.00 pre-earnings range all in a single trading day. Since that time the stock has moved sharply higher. Today Amazon Inc is extending it gains by $2.79 to $125.20. While this stock has had a great move higher over the past two weeks this is where the real test takes place.
Amazon Inc is undoubtedly a leading technology and retail stock which makes it very different from its peers. However, today the stock is now trading up towards its daily 200 moving average at $126.70. The stock is also facing some minor resistance from its July 13th pivot high. Therefore, when you put these two chart resistance factors together the stock should be facing some major headwinds shortly. Profit taking and a likely pullback are now in the cards for the stock at these levels.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
