Jeff Bezos, the richest person in the world and by all accounts a die-hard “spacehead,” had to sit aside and watch while his billionaire rival Richard Branson blasted off into space this weekend, beating Bezos’s scheduled July 20 blast off by less than two weeks.
Despite losing the “billionaire space race,” Bezos can take solace in a different rocket ship that took off last week: the stock of his (former) company, Amazon (NASDAQ:AMZN).
As the chart below shows, after a full year sitting on the proverbial “launchpad” between $2900 and $3500, AMZN broke out to a fresh record high last week. Astute readers will note that the price breakout was also accompanied by a move in the 14-day RSI to its highest level in a year as well, signaling strong buying pressure behind the rally:
Moving forward, the technical bias remains firmly in favor of the bulls as long as AMZN holds above previous-resistance-turned-support at $3500, with room for a rally toward $4000 as we move through the summer after such a long period of sideways consolidation.
While most of us will never be able to take our own personal trip into space, hopping aboard the AMZN rocket for a potential move into the stratosphere may be the next best thing for traders!