Amazon shares (NASDAQ:AMZN) is currently racing north, and this is a bias that should continue this year. The bullish strength began in January and became particularly stronger at the end of January 2015. Since February, the price has gone further north and it is now consolidating.
The consolidation is a normal reduction in the momentum of the market and when momentum does increase again, the price is expected to continue going upwards. In the chart, 4 EMAs are used for this analysis and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left part of the chart.
All the EMAs are sloping upwards, affirming the validity of the existing bullish trend. The price would continue its northward journey either in a slow and gradual manner or in a fast and furious manner. One may buy occasional bearish retracements into the EMAs 10 and/or 20. Until the EMA 200 is breached to the downside, this remains a bull market.
Learn from the Generals of the Markets: Market Generals
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