Asset Watch
Tuesday, September 19, 2023
Because of this, a breakout or breakdown could be on the horizon, and when the latter occurred in October 2022, the 10-week MA became resistance en route to new lows.
Another ominous indicator is Amazon’s RSI divergence, whose stock has recorded three new weekly closing highs, while its RSI (the black line at the bottom) has recorded lower highs. Consequently, momentum has weakened at a time when S&P 500 seasonality is bearish, and Amazon confronts a make-or-break technical challenge.
Is Amazon’s risk-reward proposition poor right now, or will a breakout to new highs silence the doubters?