New bullish signal on Amazon as it hits lower rail of channel
Amazon (Nasdaq: AMZN) was performing incredibly well after bottoming in December. The stock had rallied from the $1,350 area all the way up to the $1,950 in just over four months. Unfortunately for shareholders, the stock has gotten caught up in the recent selling in the overall market and has pulled back down to the $1,800 level at this point.
The good news is that the stock is right around a lower rail of what I believe to be a forming trend channel. In this case, I connected the highs from January, April, and May to form the upper rail and then drew a parallel lower rail. Connecting that rail with the low from early March puts it in the $1,800 area at this time.
We also see that the stochastic readings have hit oversold territory and made a bullish crossover on May 29.
The Tickeron AI Trend Prediction Engine generated a bullish signal for Amazon on May 28 and it showed a confidence level of 88%. The signal calls for a gain of at least 4% over the next month and past predictions on the stock have been successful 77% of the time.
One of the reasons for Amazon’s incredible run over the last few years is its fundamental performance. The company scores a 99 on Investor’s Business Daily’s EPS rating and that means it is in the top 1% of companies for earnings growth in the last three years and in recent quarters.
If there is a knock on Amazon, it is the company’s profit margin is low. Currently, it is at 4.8% and that is well below average.
Momentum Indicator for AMZN turns positive, indicating new upward trend
AMZN saw its Momentum Indicator move above the 0 level on June 26, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on June 27, 2025. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 286 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on June 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.752) is normal, around the industry mean (4.295). P/E Ratio (36.386) is within average values for comparable stocks, (50.403). AMZN's Projected Growth (PEG Ratio) (2.884) is very high in comparison to the industry average of (1.418). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (3.694) is also within normal values, averaging (6.693).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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