Weakness in Amazon stock is creating an opportunity to buy medium term strength, according to Ari Wald of Wolfe Research. Rising pullbacks above a rising 200-day MA offer good buying opportunities but in the meantime, investors can buy shares now down to $325-$340
support. Deeply oversold momentum also supports a near-term basing attempt.
Relative to the S&P 500, Wald’s bullish outlook is based on the breakout above the stock’s 2011-2013 consolidation. This is in the direction of Amazon’s long-term uptrend and suggests outperformance this year.