Amazon Chart Warns of Further Decline Amid Bullish Price Action
The chart of Amazon (AMZN) is flashing a warning sign, according to TheStreet Pro. While the stock has shown bullish conditions in its recent price action, other indicators are sending bearish signals. The moving average convergence divergence and stochastics are on sell signals, and the parabolic stop and reverse just turned for a bearish sign.
Money flow has also turned down again after a weak attempt at going positive, and relative strength is moderate but heading lower. However, this does not necessarily mean that Amazon's price will drop further in the short term.
The stock has already pulled back 10% from its all-time highs, so some sideways action is expected before earnings are released later this month. TheStreet Pro remains bullish on Amazon and rates it a two in their Pro Portfolio, advising to buy on pullbacks.