Unlike Google, Amazon does not have a neat a trend line.
The solid yellow trend line is Amazon’s equivalent to the Google Forever trend line. The bottom line is that we should assume that Amazon remains in a bull market while price remains above this trend line.
The more recent red channel is an attempt to show where price is more recently finding support and may find resistance.
Note that during this bull market volume has shown a fairly steady decline, at least since January 2009 and probably before that. A bull market which is rising on light and declining volume is unsustainable, theoretically. The fact though is that Amazon has been rising on declining volume for years now.
This decline in volume may indicate that eventually when a high is found the next bear market may be very fast indeed. There would be very little support below to halt a fall in price because volume is so light.
Published @ 01:03 p.m. EST.