The “Mad Money” The presenter said Boroden believes that if the stock can hold above the recent lows set on December 3, it will likely continue to move higher in the long term. However, if Amazon stock falls below that support, Boroden thinks it could “get worse,” Cramer said.
Shares of Amazon, down 4% over the past month, have yet to show a buy signal in Boroden’s eyes, Cramer said. But she was encouraged by what she saw earlier this month, when a series of Fibonacci time cycles appeared on Amazon’s charts, Cramer said.
Boroden is an expert on the Fibonacci strategy, used by technical analysts and traces its origins to a sequence of numbers identified in the 13th century by the Italian mathematician. Leonardo Fibonacci.
Carolyn Boroden’s technical analysis focuses on Amazon stock.
Mad Money with Jim Cramer
“Whenever [Boroden] Cramer said.
“Boroden wants to see Amazon do something different before she’s ready to go up,” Cramer explained.
Specifically, he said, Borodon likes to analyze the 30-minute chart for a stock and wait for the 8-period exponential moving average to break above the 34-period exponential moving average. When that happens, it’s a sign that the stock’s momentum has turned positive.
“Unfortunately, we’re not there yet, but her Fibonacci timing cycles suggest that the stock is likely to bottom sometime in the next few days – it may already be,” Cramer said. earlier today,” Cramer said.
If that happens and Boroden can fully confirm Amazon, the technician believes the stock could rise just under $3,900 per share, Cramer said. It closed Tuesday’s session down 0.28% at $3,381.83.
“If the stock fails to hold its support level — that is, if it closes down more than a few points from its current level — then it ruins the whole bullish thesis,” Cramer said. . “In fact, if Amazon pulls back a bit more than these levels, Boroden says you need to expect significantly more downsides.”
However, Cramer advised viewers that he personally doesn’t expect Amazon to drop significantly. He also noted that his philanthropic foundation owns Amazon.
Register now for CNBC Investment Club to track Jim Cramer’s every move in the markets. Disclosure: Cramer’s charitable foundation owns shares of Amazon.
https://www.cnbc.com/2021/12/14/jim-cramer-charts-suggest-amazon-near-a-make-or-break-trading-moment.html The chart suggests Amazon near the time when the transaction is okay