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Amazon.com Bounces at the 50-day SMA

Long
NASDAQ:AMZN   Amazon.com, Inc
The Nasdaq-100’s sharp pullback last week brought all kinds of solid names back to earth. And one of the most prominent is Amazon.com.

Jeff Bezos’ e-commerce giant triggered some alerts on TradeStation yesterday and Friday after dipping down to test its 50-day simple moving average ( SMA ). This provides a fairly straightforward momentum setup.

AMZN is also holding the top of a bullish triangle around $3,250, which it broke three weeks ago.

Next, stochastics show an oversold condition.

Finally there are some potentially bullish fundamental considerations. One is limited exposure to China – unlike chipmakers or Apple . That may reduce its risk given the political backdrop into November.

Second, AMZN has the highest share price in the Nasdaq-100 and the second highest in the S&P 500 (after homebuilder NVR ). Tesla and AAPL just delivered stock splits. Will AMZN follow?

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