Amazon Eyeing An Important Chart Breakout

Online retailing giant, Inc (AMZN), after pulling lower along with the broader market during part of the 2007 – 2009 financial crisis, still continues its rally off the late 2008 lows in unabated fashion.  Since then the stock has lifted roughly 680% despite a few meaningful pullbacks along the way.  In other words, just like a strong stock should do, any pullbacks are being bought and the steeper any pullbacks are the more aggressively money comes flowing back into the stock and pushing it to new highs.  All of this is a vote of confidence for, Inc (AMZN), even though by now at least some of the stock’s performance is driven by momentum funds jumping on the band wagon.  More importantly  however, and for the bulls somewhat reassuring,, Inc (AMZN) is not a new stock for traders, but in fact one of the oldest and most powerful survivors of the dot com era.  This may at the margin make the stock less susceptible to a sharp demise given that traders and analysts are familiar with the company’s balance sheet and business strategy, as much as the latter is always subject to amendments as new avenues of revenue are being discovered.

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In short, the stock continues to be a monster and after another pullback recently staged a good rally that now sets the stock up for another potential breakout to new all-time highs.

During the most recent pull back in the broader market in the May – June period,, Inc (AMZN) has continually showed relative strength versus the S&P 500 index.  Yesterday July 2nd attempted a breakout past the January 25th highs of $284.72, before coming off the intra-day highs along with the broader market and settling just shy of those January highs.  The stock however remains well positioned to challenge and eventually overcome the January highs, which if it can do so successfully should move the stock toward the $300 area over the next two months or so.  Strong stocks remain so until proven otherwise and, Inc (AMZN) currently remains well supported by the bulls and trend follower crowd.

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