Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

When Will The Amazon, Microsoft And Nike Bounce End? What The Charts Say

Published 02/09/2022, 17:32
Updated 02/09/2022, 18:10
© Reuters.  When Will The Amazon, Microsoft And Nike Bounce End? What The Charts Say

© Reuters. When Will The Amazon, Microsoft And Nike Bounce End? What The Charts Say

Amazon.com, Inc (NASDAQ: NASDAQ:AMZN), Microsoft Corporation (NASDAQ: NASDAQ:MSFT) and Nike , Inc (NYSE: NYSE:NKE) were all trading slightly higher on Friday after printing bullish reversal candlesticks on Thursday, which suggested a bounce was likely to come.

A hammer candlestick pattern forms when a red or green candlestick prints, with a long lower wick and a short upper body, which resembles a hammer.

A hammer candlestick, when found in a downtrend, can indicate a reversal to the upside is on the horizon. It is a lagging indicator, as the next candle on the time frame being studied must print before the pattern can be validated.

A hammer candlestick doesn’t necessarily mean a new uptrend will occur, only that a bounce higher is likely imminent.

Candlestick patterns can be used to indicate the future price direction of a stock. Candlestick patterns are especially useful for technical traders when they are combined with other indicators such as larger patterns, trading volume, relative strength index (RSI) and divergences between RSI and price action.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Amazon Chart: On Thursday, Amazon printed a hammer candlestick near the lower range of the gap, which Benzinga called out was likely to happen on Monday. On Friday, Amazon bounced up higher to confirm the hammer candlestick was recognized.

  • Amazon has been trading in a downtrend since Aug, 16 making a consistent series of lower highs and lower lows. Amazon’s most recent lower high within the downtrend was formed on Aug. 26 $137.83 and the most recent lower low was printed at the low-of-day on Thursday.
  • For Amazon to negate the downtrend, the stock will need to either soar up above $138 or retrace to print a higher low above $124.
  • Amazon has resistance above at $131 and $136.83 and support below at $125.93 and $122.24.
The Microsoft Chart: Like Amazon, Microsoft’s hammer candlestick was confirmed on Friday with higher prices. The stock is also trading in a downtrend, with the most recent lower high formed on Wednesday at $267.11 and the most recent lower low formed at the $255.41 mark on Thursday.

  • Also like Amazon, Microsoft can negate the downtrend by spiking up above $268 or by printing a high low above Thursday’s low-of-day on the next retracement. If Microsoft is able to rise up to print a higher high, the stock will gain the eight-day exponential moving average (EMA), which would be bullish.
  • Microsoft has resistance above at $271.36 and $276.90 and support below at $263.19 and $256.84.
The Nike Chart: Nike has also been in a downtrend since Aug. 16, making a series of lower highs and lower lows. Nike’s most recent lower high was formed on Tuesday at $110.08 and the most recent lower low was printed at the $103.80 mark in Thursday.

  • Nike was showing less strength on Friday compared to Amazon and Microsoft, but was still working to print a dragonfly candlestick, which could indicate higher prices will come again on Monday. In order to print a higher high, Nike will have to regain the eight-day EMA first, which makes a continuation of the downtrend even more likely.
  • Nike has resistance above at $109.90 and $115.59 and support below at $103.46 and $99.53.
See Also: (TRSSF) – This Marijuana Stock Has Outperformed Amazon, Google (NASDAQ:GOOGL), Facebook (NASDAQ:META) And Netflix (NASDAQ:NFLX)

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Got that wrong then lol
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.