Amazon stock has pulled back to its bullish 50-day moving average
Tech giant Amazon.com Inc (NASDAQ:AMZN) has been hanging around the $218 level since pulling back from its recent Dec. 16 record high of $233. The stock could soon get a lift from a historically bullish trendline, however.
Per Schaeffer's Senior Quantitative Analyst Rocky White, AMZN has come within striking distance of its 50-day moving average after a lengthy period above it (defined by White as 80% of the time over the past two months and 8 of the last 10 trading days). This has occurred five other times over the last three years, after which the stock was higher one month later 80% of the time with an average 5.2% gain.
Plus, the stock's 14-day relative strength index (RSI) of 37.9 is nearing "oversold" territory, which is typically indicative of a short-term bounce.
