Our new Security Analysis tool allows clients to search for individual stocks and ETFs in order to analyze them more closely. Below is a snapshot of one section of our Security Analysis tool for Amazon.com (AMZN). As noted, Amazon.com (AMZN) experienced a technical “Golden Cross” last Friday, which triggers when the stock’s 50-day moving average closes above the 200-day moving average as both moving averages are rising. Our text widget notes the golden cross along with a couple additional data points. One is that AMZN is currently in a long-term uptrend pattern with neutral timing. The other is that AMZN reported earnings last Thursday after the close and beat EPS estimates. The stock gapped up 1.41% the following morning after earnings, indicating that investors’ initial reaction to the news was positive.
The stock chart that’s also featured on our Security Analysis page shows AMZN’s golden cross more clearly. We’ve circled the point at which the golden cross occurred, which again happens when the 50-day crosses above the 200-day as both moving averages are rising. While AMZN certainly appears to be extended here, a golden cross is thought to be a positive technical formation. In the case of AMZN, the stock has seen eight prior golden crosses since its IPO in the late 1990s. In the three months that followed, AMZN saw a median gain of 9.8% with positive returns five out of eight times. More recently, the stock saw gains in the three months that followed each of its four golden crosses since the bull market began in March 2009. Start at two-week free trial to Bespoke Institutional to access our Security Analysis tool and everything else we have to offer.