What's Next for Amazon After Its Earnings Bounce?

[Trading With Larry Benedict]( What's Next for Amazon After Its Earnings Bounce? By Larry Benedict, editor, Trading With Larry Benedict One of the strongest performers in the market this year has been tech giant Amazon (AMZN)… The e-commerce and cloud computing company peaked last month. This peak represented a near-80% gain for it since January. Showing the strength of buyers’ conviction, AMZN rallied for almost two months after the Nasdaq topped out in mid-July. After hitting that peak on September 14, however, AMZN fell almost 20% in a month and a half. Yet AMZN has gapped higher after its Q3 earnings beat last Friday. So today I want to see what’s coming next… Recommended Link [Trade this one stock to make money in any market]( [image]( What if you could ignore 99% of the entire stock market… and still have the chance to make money in bullish AND bearish conditions? Sadly, most folks don’t even see triple-digit returns in a single year – or even in 10-years… But today, millionaire trader and former professional money manager Jeff Clark, is revealing his trading breakthrough… He’s used this secret to help 170,000 regular folks have the chance to see huge gains time and time again. The key: Don’t over-complicate things. [Watch Jeff Demonstrate His ONE Stock Trade Now.]( -- Amazon’s Counter-Rally Failed The chart of AMZN below shows its huge turnaround from the end of last year. Coming into the end of 2022, the 50-day moving average (MA, blue line) was falling heavily. This downtrend saw AMZN lose 57% from its 2021 peak. Amazon (AMZN) [Image] Source: eSignal Buying momentum slowly returned. And AMZN formed a base to rally at the start of the year. That rally continued to build momentum as the relative strength index (RSI) gained a foothold in the upper half of its range (above the green line). Amazon dipped in March after a false break higher into February. That did briefly drive the RSI lower. But the RSI remained in its upper range for the remainder of AMZN’s rally. The action of the two MAs added to the bullish sentiment. The 10-day MA (red line) crossed above the 50-day MA in March. Both of them then tracked higher. But after hitting its peak in September at “A,” AMZN retraced along with two bearish signals: - The RSI reversed sharply from near-overbought territory. AMZN’s pullback developed further as the RSI fell back into the lower half of its range. - The 10-day MA crossed sharply below the 50-day MA. Since then, the 50-day MA has also slowly started to roll over. Take another look: Amazon (AMZN) [Image] Source: eSignal AMZN tried to counter-rally in September, but that move petered out when the RSI couldn’t break up through resistance. At the time, Amazon briefly touched the 50-day MA. But it was unable to break above it. Since then, the RSI has tried to break higher several times but remains stuck in its lower range (orange circle). Now the RSI is pushing up against resistance again. So what am I looking for next? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. When Support Becomes Resistance The most immediate thing I’ll be watching this week is the action of the RSI. Unless the RSI can break back into its upper band, AMZN’s recent bounce has little chance of developing into anything bigger. Instead, dwindling momentum will continue to weigh down the stock. Beyond that, I’ll also be closely watching the 50-day MA. When AMZN was rallying, it touched the 50-day MA multiple times without falling below it. You can see that in April, July, August, and September. With AMZN rolling over since then, I’ll look for the opposite from here… If AMZN can’t break above the 50-day MA, that will add more evidence that AMZN’s current pullback has further to go. Regards, Larry Benedict Editor, Trading With Larry Benedict P.S. My Bitcoin Skimming event goes offline at midnight tonight. So if you haven't yet caught up on the best way to profit from bitcoin without needing to buy a single penny of crypto, then your time is limited. As a reminder, this is how my followers made [gains like $3,615… $4,036… even $4,898]( in as little as a week. And they did it right from a normal brokerage account. I encourage you to catch the replay now before it disappears. Please don't miss out... [You can watch right here.]( Mailbag Do you think Amazon will rally again before the end of the year? Let us know your thoughts at [feedback@opportunistictrader.com](mailto:feedback@opportunistictrader.c). IN CASE YOU MISSED IT… [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](