Amazon.com, Inc. (NASDAQ:AMZN) announces the opening of the Amazon Professional Beauty Store to offer professional stylists

Amazon.com, Inc. (NASDAQ:AMZN) announces the opening of the Amazon Professional Beauty Store to offer professional stylists

Amazon.com, Inc. (NASDAQ:AMZN) announces the opening of the Amazon Professional Beauty Store to offer professional stylists

Shares of Ulta Beauty and Sally Beauty sank Monday after Amazon launched its own beauty store for licensed professionals.

The e-commerce giant announced the Amazon Professional Beauty Store to offer professional stylists, barbers, and aestheticians beauty supplies typically found in salons and spas. Sally Beauty’s stock plunged nearly 17% and Ulta fell 2.6% following the news on Monday.

“We are pleased to offer those in the professional beauty industry even more selection through the convenient shopping experience our customers love on Amazon Business,” Steve Kann, director of customer driven experience at Amazon Business, said in a blog post. “Stylists can find more of what they need at great prices with convenient delivery options, freeing up their time to focus on what’s important: their customers.”

Amazon’s professional-use selection requires a license to purchase products, such as state-issued cosmetology, barber, or aesthetician licenses.

The competition adds more pressure to Sally Beauty, whose stock has already tumbled 20% amid disappointing earnings. Ulta, on the other hand, has had a stellar year with its shares rising nearly 40% in 2019. The stock recently got a boost from the introduction of cosmetics lines from Kylie Jenner and YouTuber James Charles.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,841.45.

The projected upper bound is: 1,999.08.

The projected lower bound is: 1,831.51.

The projected closing price is: 1,915.30.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 65.1836. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.83. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 14 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 74. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 2.600 at 1,913.900. Volume was 46% below average (neutral) and Bollinger Bands were 58% wider than normal.

Open High Low Close Volume___
1,912.6601,916.8601,901.3001,913.900 2,282,969

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 1,889.86 1,866.26 1,746.96
Volatility: 9 29 46
Volume: 3,122,712 4,232,069 5,586,204

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AMAZON COM is currently 9.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 4 periods.

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