Market Pulse Archives

April 19, 2021, 2:31 p.m. EDT

Amazon chart produces 'death cross' pattern despite rising short- and long-term trend trackers

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X Inc. (AMZN)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore Inc.'s /zigman2/quotes/210331248/composite AMZN +0.67% stock chart has produced a "death cross" pattern, the first in 18 months, but it has done so even both the shorter-term and longer-term trend trackers were rising. A "death cross," in which the 50-day moving average crosses (50-DMA) below the 200-day moving average (200-DMA), is typically seen as a bearish technical pattern, with many chart watchers seeing them as marking the spot a shorter-term selloff transitions to a longer-term downtrend. They aren't always good market-timing patterns, as they are well telegraphed, but they can help provide perspective on a recent move. On Monday, Amazon's stock fell 0.7% in afternoon trading, while the 50-DMA rose to $3,180.95 from $3,180.03 and the 200-DMA rose to $3,181.95 from $3,179.46. This would mark the 13th "death cross" since Amazon's stock went public in May 1997, but would be the only one to appear when both the 50-DMA and 200-DMA were rising. The 50-DMA may be rising recently, but it is currently around the same level as it was in mid-September 2020, while the 200-DMA is roughly 33% above where it was at the same time. Amazon's 50-DMA has been above the 200-DMA since Feb. 5, 2020, as the ecommerce giant was seen as a beneficiary of COVID-19-related restrictions, and the last "death cross" appeared on Oct. 10, 2019. The stock has edged up 3.7% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.18% has gained 10.8%.

US : U.S.: Nasdaq
$ 3,292.43
+22.04 +0.67%
Volume: 506,205
May 18, 2021 10:05a
P/E Ratio
Dividend Yield
Market Cap
$1649.34 billion
Rev. per Employee
-7.62 -0.18%
Volume: 415.05M
May 18, 2021 10:05a

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.