Amazon (AMZN) Just Overtook the 20-Day Moving Average
Amazon (AMZN) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AMZN crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of AMZN have been moving higher over the past four weeks, up 5.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that AMZN could be poised for a continued surge.
The bullish case solidifies once investors consider AMZN's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 16 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AMZN for more gains in the near future.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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