by Serge Berger | October 3, 2013 9:52 am
Online retailing giant Amazon (AMZN) continues to frustrate the bears and reward the bulls. The company’s frequently expanding business ventures continue to bear fruit, and Amazon stock gets bought on every dip. Of course, AMZN has been a crowd favorite all the way back to the dot come era in the late ’90s, when it spearheaded the online retailing world as we know it
To support an ever-rising stock price, AMZN keeps growing its top line at healthy clips and communicates its strategy fairly well to investors. Additionally, Amazon’s entertaining founder and CEO, Jeff Bezos, has a way of stirring excitement around his company and product announcements that arguably rivals the late Apple (AAPL) founder Steve Jobs.
On the charts, the multiyear look back from 2007 shows an orderly uptrending channel, the upper end of which was once again reached this week. Through this lens, the long side of the stock offers less-than-favorable odds in the medium-term as mean-reversion toward the middle end of the channel will likely kick in at some point in coming weeks or months.
In the meantime, however, agile traders may well stay the trend, until it ends.
After breaking past a multimonth resistance line in early July, AMZN rallied sharply only to give all of those gains back up for a retest of the breakout level in late August. From there, before the bears had a chance to react, Amazon stock shot higher again, and had moved past the August highs by mid-September.
For the past couple of weeks, AMZN has consolidated at new highs and began to break out higher over the past couple of days. The trend favors higher highs, but bulls should respect any bearish reversals, as Amazon stock can be a quick mover.
Serge Berger is the head trader and investment strategist for The Steady Trader. Sign up for his free Weekly Market Outlook Video here. As of this writing, he did not hold a position in any of the aforementioned securities.
Source URL: http://investorplace.com/2013/10/amzn-amazon-stock-puts-bears-to-shame/
Short URL: http://invstplc.com/1frPNnm
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.