Shares of tech giant Amazon.com Inc (NASDAQ: AMZN) surged more than 10% last week, starting what looks like what could be a decisive run toward November's all-time high. The move hasn't come out of the blue. For months now, the stock has been carving out a steady series of higher lows, quietly building pressure beneath the surface even while the significant gains weren't coming.
As the rally has started to gather fresh pace, one of the stock's technical indicators is grabbing attention. Over the past week, Amazon's relative strength index (RSI) has jumped to 70, a level traditionally associated with overbought conditions. In many stocks, that would be enough to raise red flags and prompt caution. With Amazon, though, knowing the context suggests this is more likely a buy signal.
