Technical analysis of a stock is quick and can be easily completed from a visual standpoint. When looking at a chart, you see all the lines and shaded areas, those are likely many of the technical data points. As with any equity, you first want to identify the company. Now that you have identified Amazon.com, Inc. (AMZN) as the company to research, look at the sector and industry the company operates in. Amazon.com, Inc. operates in the Services sector and the Catalog & Mail Order Houses industry, giving you the background necessary to understand the technical movements. Also for benchmark data points, the current market cap for Amazon.com, Inc. is 695.07B.
The current price of Amazon.com, Inc. (AMZN) is $1,405.23. First, looking at the 52-week high and 52-week low will give you a range to begin with. Currently, the 52-week high is -13.13% and the 52-week low is 58.87%. When the price nears these points, you can begin to research if they are strong support or resistance. The restraint with these numbers are they are only within the year, potentially missing other important price points.
From here, you can begin analyzing the relative strength index, or RSI for a 14 period length. This can serve as a short-term support resistance level for the stock. The current 14 period RSI for Amazon.com, Inc. is 40.77. Using the average true range can compliment this data point because it is a tool that measures volatility. When volatility increases, it may be a turning point in the stock. Currently for Amazon.com, Inc., the average true range is 51.03.
Lastly, a popular technical analysis tool you should use are the moving averages. The longer the average is pulled, the smoother the line is due to the averaging nature of the data. The 20-day simple moving average for Amazon.com, Inc. is -7.47%. In relation to price and similar to the RSI, the 20-day simple moving average can offer a potential support or resistance level. The 200-day simple moving average is 20.62%. When the 20-day crosses the 200-day, it can be a potential shift in market direction.
Using technical analysis can be a quick way to analyze an equity and decide if it is worth more of your time. Amazon.com, Inc. (AMZN) may look good on a chart, but it could artificially inflated or at unsustainable price levels. Be sure to use more data points to help formulate a well rounded opinion of Amazon.com, Inc.. There are many equities to choose from and it is up to you to determine if Amazon.com, Inc. is the right one.