Another Reason to Love Amazon

• Posted by Greg Harmon
• on August 13th, 2014

Amazon, $AMZN, has given the consumer and small business uncountable reasons to be excited about the company. Many of them are illustrated in the picture above. I personally use at least five of them. But this week there is one more reason to get excited about Amazon, its stock price chart.

Amazon’s stock price had moved sideways for about 3 years until it started higher in early 2007. And since that time it has been a tremendous investment. But what is most interesting about this chart is that over that 7 year period, the 100 week SMA has both acted as support and a buying point, outside of a brief dip below during the financial crisis in 2008. Last week it touched that 100 week SMA again and this week it is heading higher, a buy signal. Some technical analysts will look at this chart and tell you that it really needs to clear the prior high at 360 to be a buy. But hey, that is 10% higher and with a stop at the 100 week SMA near 300, offers a good reward to risk ratio just to get there. If it continues higher and brings in other buyer after that, all the better.

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