Amazon.com (NASDAQ:AMZN), has given the consumer and small business uncountable reasons to be excited about the company. Many of them are illustrated in the picture above. I personally use at least five of them. But this week there is one more reason to get excited about AMZN -- its stock-price chart.
Amazon’s stock price had moved sideways for about 3 years until it started higher in early 2007. And since that time it has been a tremendous investment. But what is most interesting about this chart is that over that 7-year period, the 100-week SMA has both acted as support and a buying point, outside of a brief dip below during the financial crisis in 2008. Last week it touched that 100-week SMA again and this week it is heading higher -- a buy signal. Some technical analysts will look at this chart and tell you that it really needs to clear the prior high at 360 to be a buy. But hey, that is 10% higher and with a stop at the 100-week SMA near 300, offers a good reward-to-risk ratio just to get there. If it continues higher and brings in other buyers after that, all the better.