Amazon.com, Inc. (NASDAQ:AMZN) Stock Is Set To Test A Key Support Level
Seattle Based e-tailing giant Amazon (NASDAQ:AMZN) reported its Q2 earnings last week and life for Amazon bulls hasn't been easy ever since. Amazon missed massively on the bottom line, reporting EPS of 40 cents, a dollar lower than the analyst consensus. The big miss has spooked investors, with Amazon stock losing over $50 in the 4 trading sessions since the earnings release. The post earnings fall has shaved 5% off the wealth of Amazon stock investors. However, it's not all bad news for Amazon bulls, as can be seen from the Amazon stock technical chart.
The post earnings fall in AMZN stock price has brought the stock in close proximity to its 50-day SMA, which has been a key support level for the stock in the last 7 months. The case for a reversal of the recent downtrend is also supported by the Bollinger Bands, which is a popular momentum indicator used by technicians. AMZN stock price is currently flirting with the lower band, having bounced off it earlier this week. The Relative Strength Index (RSI), which is another momentum indicator currently sits at 48, down from nearly 90 only a week ago. Given the strong support from the 50-day SMA and the bullish signal from the Bollinger bands, with no meaningful resistance on the upside, Amazon stock might be set for higher ground in the coming trading sessions.
Source: AMZN stock technical chart by amigobulls.com
Multiple Technical Positives Could Lift Chipotle Mexican Grill (NYSE:CMG) Stock
Shares of Denver, Colorado based Chipotle Mexican Grill (NYSE:CMG) have gone through a roller coaster ride in the last couple of weeks. After falling nearly 14% ahead of the Q2 earnings announcement, Chipotle stock looked set to bounce back strongly following the earnings announcement. However, fresh news of the norovirus outbreak in a Chipotle restaurant in Virginia hurt the rally meaning that CMG stock price has essentially remained flat since the earnings announcement. The big question: Will Chipotle stock regain the pre-earnings momentum? While the recent norovirus outbreak in Virginia indicates that the stock might be headed lower, the Chipotle stock technical chart doesn't seem to agree.
Shares of the restaurant chain look set for an uptick if the Chipotle stock technical chart is anything to go by. Chipotle stock price initially surged in after hours trading before giving most of those gains courtesy of the fresh outbreak. However, there is positive news for Chipotle stock bulls. Chipotle stock is massively oversold, according to a very popular momentum indicators: The Relative Strength Index (RSI). Chipotle RSI currently reads 25.67, well below the oversold threshold of 30. Based on the RSI, Chipotle stock might be headed higher over the coming trading sessions.
In addition to the RSI, the Moving Average Convergence Divergence (MACD) indicator is also flashing a bullish signal. The MACD broke out above the signal line in the last trading session, in what is also known as a bullish MACD crossover. The bullish MACD crossover is in alignment with the bullish signal from the RSI, both of which indicate that Chipotle stock might be headed higher. Chipotle stock will face a key resistance from the 20-day SMA, which is nearly 20 handles above the last closing price.
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