Amazon (AMZN), Microsoft (MSFT) – When will Amazon, Microsoft and Nike Bounce end? What the charts say

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Amazon.com, Inc. AMZN, Microsoft Corporation MSFT and Nike, Inc. NKE were all trading slightly higher on Friday after printing bullish reversal candlesticks on Thursday, which suggested a rebound was likely to occur.

A hammer candlestick pattern is formed when a red or green candlestick prints, with a long lower wick and a short upper body, which resembles a hammer.

A hammer candlestick, when in a downtrend, may indicate that an upward reversal is on the horizon. It is a lagging indicator because the next candle on the time frame must print before the pattern can be validated.

A hammer candlestick does not necessarily mean that a new uptrend will occur, only that a bounce higher is likely imminent.

Candlestick patterns can be used to indicate the future price direction of a stock. Candlestick patterns are especially useful for technical traders when combined with other indicators such as broader patterns, trading volume, relative strength index (RSI) and divergences between RSI and the chart. evolution of prices.

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The Amazon chart: On Thursday, Amazon printed a hammer candlestick near the lower range of the spread, which Benzinga said was likely to happen on Monday. On Friday, Amazon bounced higher to confirm that the hammer candlestick has been recognized.

  • Amazon has been trading in a downtrend since August 16, creating a consistent series of lower highs and lower lows. Amazon’s last lower high in the downtrend was formed on August 26 at $137.83 and the last lower low was printed at the daily low on Thursday.
  • For Amazon to reverse the downtrend, the stock will either need to rise above $138 or pull back to print a low above $124.
  • Amazon has resistance above $131 and $136.83 and support below at $125.93 and $122.24.

The Microsoft chart: Like Amazon, Microsoft’s hammer candlestick was confirmed Friday with higher prices. The stock is also trading in a downtrend, with the most recent lower high formed on Wednesday at $267.11 and the most recent lower low formed at $255.41 on Thursday.

  • Much like Amazon, Microsoft can undo the downtrend by breaking above $268 or printing a low above Thursday’s daily low on the next retracement. If Microsoft is able to rise to print a higher high, the stock will gain the eight-day exponential moving average (EMA), which would be bullish.
  • Microsoft has upper resistance at $271.36 and $276.90 and lower support at $263.19 and $256.84.

The Nike graphic: Nike has also been in a downtrend since August 16, making a series of lower highs and lower lows. Nike’s most recent low high was formed on Tuesday at $110.08 and the most recent low was printed at $103.80 on Thursday.

  • Nike was showing less strength on Friday compared to Amazon and Microsoft, but was still working to print a dragonfly candlestick, which could indicate higher prices will return on Monday. In order to print a higher high, Nike will first need to regain the 8-day EMA, which makes a continuation of the downtrend even more likely.
  • Nike has upper resistance at $109.90 and $115.59 and lower support at $103.46 and $99.53.

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