Amazon (NASDAQ:AMZN) pulled back last week after recorded a new all time high of 954.40. The stock has been trading in a nice upward trajectory since early January and at this point the up trend is still intact. The daily RSI indicator has reached overbought territory in the last sessions, suggesting that after such a strong run the price is due to take a breather again, as happened in early April.
For the short-term traders, as long as the price holds above the 923.72 level, they should remain bullish as we are likely to resolve this short-term range to the upside rather than the downside. A protective stop loss at the 50EMA could be used for the medium-term traders.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.