Technical Analysis Quiz

Technical Indicators for Amazon's Stock

• A technical indicator suggesting strengthening momentum of Amazon's stock price is the moving average convergence divergence (MACD) or the relative strength index (RSI).
• The 200-day moving average is significant for many institutional investors as it provides a long-term trend indication, helping them make informed investment decisions.

Technical Analysis (TA) Score

• The cumulative TA score for Amazon's stock is based on various technical indicators, providing a comprehensive view of the stock's performance.

Overbought/Oversold Analysis

• Analyzing whether a stock is overbought or oversold before investing is crucial to identify potential buying or selling opportunities, and to avoid making poor investment decisions.

Cumulative TA Score and Directional Momentum

• The cumulative TA score for Amazon's stock, based on technical indicators, suggests directional momentum, indicating the stock's potential future price movement.
• The technical indicators collectively signal the strength and direction of Amazon's stock.

Moving Averages

• The 5-day moving average and the 200-day moving average differ in their timeframes, with the 5-day average providing a short-term trend indication and the 200-day average providing a long-term trend indication.

Stochastic Oscillator and RSI

• The Stochastic Oscillator and RSI are technical indicators used to assess the state of Amazon's stock, with the Stochastic Oscillator measuring the stock's closing price in relation to its price range and the RSI measuring the stock's recent price gains against its recent price losses.

Importance of Positive Setup

• A positive setup of Amazon's stock in the medium and long-term is important to institutional investors as it indicates a strong potential for future growth, making it an attractive investment opportunity.