Shares of Amazon (AMZN) are up nicely this morning, breaking out of a sharp cup with handle base on news that the company has secured an exclusive content licensing deal with TBS and Warner Bros.  Specifically, the TNT drama Falling Skies and the Warner Bros. produced “The Closer”.  These shows will be added to the Prime Instant Catalog giving Prime members free access to these shows.  Amazon had rolled out a monthly Prime membership service, but quickly cancelled the test and only offers the yearly membership.  If you are a frequent Amazon shopper and like to watch shows and movies on demand from your PC or mobile device, it’s a great deal.  You’re even allowed to share the shipping savings with family members in the same household.

“Today’s agreements with TNT and Warner Bros. Domestic TV add two great TV series to Prime Instant Video,” said Brad Beale, Director of Digital Video Content Acquisition for Amazon. “Falling Skies and The Closer are some of Turner’s most-watched and highly talked about series and we’re happy to offer them exclusively for Prime members to enjoy. Amazon Prime just got even better.”

Technically, shares of Amazon (AMZN) remain strong and in a 4 year uptrend on the weekly chart.  On the daily chart, the stock is breaking out of a cup with handle base this morning (albeit an average looking one).  Given the sharp, V like pattern of the base I’d expect fairly limited upside in the coming weeks and some kind of consolidation period.  The best time to purchase the stock would have actually been on a return to the 200 day moving average following the breakout in July.

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