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.
AMZN's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for AMZN turned positive on July 01, 2026. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AMZN's RSI Indicator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 07, 2026. You may want to consider a long position or call options on AMZN as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMZN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
AMZN moved below its 50-day moving average on July 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMZN crossed bearishly below the 50-day moving average on June 11, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for AMZN entered a downward trend on July 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 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 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 93, placing this stock slightly better than average.
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 (6.086) is normal, around the industry mean (6.496). P/E Ratio (29.903) is within average values for comparable stocks, (42.558). Projected Growth (PEG Ratio) (1.312) is also within normal values, averaging (1.290). Dividend Yield (0.000) settles around the average of (0.072) among similar stocks. AMZN's P/S Ratio (3.651) is slightly higher than the industry average of (1.522).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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