Amazon’s market cap reached $1 trillion yesterday. As a result, its weekly and monthly RSI are extremely overbought.
Here’s Amazon’s 14 weekly RSI
Here’s Amazon’s 14 monthly RSI
Is this a bearish sign for Amazon? Let’s see. Here’s what Amazon did next (historically) when its weekly RSI exceeded 85 (like today).
Here are the historical cases when Amazon’s 14 monthly RSI exceeded 90.
Conclusion
As you can see, Amazon’s stock is insanely overbought. When this happens, Amazon’s stock either:
Going long Amazon right now is not a good idea if you’re a medium or long term trader.
