Shares of Amazon.com, Inc. AMZN are trading slightly lower Monday. This comes after a recent surge over the past week.
Now, the stock is overbought. That means there is a good chance there will be some profit-taking or selling over the next few days, which could influence the entire market. This is why our expert team of technical analysts has made it our Stock of the Day.
Most of the time, a stock stays within its average or typical trading range. If investors are aggressive and push it above this range, it is said to be overbought.
This is important because it will draw sellers into the market. They will be anticipating a reversion to the mean or move lower. Their selling could put pressure on the stock.
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