Shares of Amazon.com Inc. rose Tuesday, enough to suggest a “breakout” technical rally ahead of the e-commerce giant’s earnings report after the close.
After a sharp climb off the March lows, as investors saw Amazon as a beneficiary of COVID-19-related lockdown measures, the stock had been consolidating within a narrowing range over the past several months.
That range, in the form of what many Wall Street chart watchers call a “pennant” pattern, is defined by a declining trendline at the top of the range and a rising trendline at the bottom. Many technicians see pennants as continuation patterns, meaning they tend to be resolved in the direction of the trend that preceded them.
For a break to be considered valid, it should be on a closing basis. Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume , especially on upside breakouts
After a sharp climb off the March lows, as investors saw Amazon as a beneficiary of COVID-19-related lockdown measures, the stock had been consolidating within a narrowing range over the past several months.
That range, in the form of what many Wall Street chart watchers call a “pennant” pattern, is defined by a declining trendline at the top of the range and a rising trendline at the bottom. Many technicians see pennants as continuation patterns, meaning they tend to be resolved in the direction of the trend that preceded them.
For a break to be considered valid, it should be on a closing basis. Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume , especially on upside breakouts
Nota
False Breakout
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.