U.S. Markets closed

Is Amazon a Buy Based on the Chart?

JP Gravitt
Is Amazon a Buy Based on the Chart?

When Amazon touched below $1500 (down over 25% from $2050) at the end of October, it did a couple of things technically.  It finished an Elliott Wave major trend and became oversold on an RSI basis for the second time in October.  It also broke through all support and ended up dangling under the 200-day moving average.  That prompted several commentators to give up on it.  I even heard one guy say that Amazon (AMZN) could be dead money for a decade.  Hmmm. Clearly Amazon looks pretty damaged here, but with a little bit more of a bounce the 50-day moving average could flatten back out, and this drop look like a blip.  How does it look from a fundamental and valuation perspective?