Yesterday’s strong gains for equity markets around the world, and the US markets in particular, helped to add further bullish momentum to Amazon. Following Friday’s breakout from the recent congestion phase, the stock is now looking to build further on the substantial platform of support between $320 to the downside and $337 to the upside. Friday’s candle finally breached the resistance region in the $339.00 region, closing the week and the session at $346.20 with a wide spread up candle with excellent volume, validating this as a genuine move and fully supported by the market makers. This bullish momentum followed through in yesterday’s session with a second wide spread up candle, confirming once again the bullish sentiment for Amazon, breaking through the minor resistance in the $355.70 region, and now looking set to move higher to test the deeper level of resistance overhead in the $380 area. The price action for Amazon has delivered some classical VPA signals over the last few weeks, following the move lower from the $380 highs of mid March. This bearish phase of price action was duly supported by the insiders as the stock price approached the $290 region towards the end of April, with the candle of the 28th, sending the first clear signal of stopping volume on the daily chart, as evidenced by the depth of the lower wick and associated ultra high volumes. The stock price duly consolidated at this level, with the remnants of selling pressure being absorbed, before finally starting to recover and move back towards the $310 region on modest volume. Finally, on the 4th June a low volume test occurred, the pre cursor to the next phase of price action, with the stock breaking out on strong volume and once again validating the reversal in sentiment, led as always by the market makers. With bullish sentiment now firmly in place, expect to see the stock price for Amazon continue higher ahead of the earnings release on the 24th July. By Anna Coulling
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