Amazon.com, Inc. (NASDAQ:AMZN) edging closer to a record high

Amazon.com, Inc. (NASDAQ:AMZN) edging closer to a record high

Amazon.com, Inc. (NASDAQ:AMZN) edging closer to a record high

Amazon stock is edging closer to a record high, fueled by a strong first-quarter earnings report and a plan to offer free one-day shipping to its best customers. Is Amazon stock a buy as it once again nears a market cap of $1 trillion?

Few companies have created such a large and lengthy runway of opportunities as Amazon, such as when it paid $13.4 billion to acquire Whole Foods Market in 2017, moving into groceries and food delivery. Amazon also continues to invest heavily in original video content and online video services, where it competes against Netflix (NFLX). And it leads the market in smart speakers with its line of products called Echo.

Founded as a simple online bookstore in 1994, Amazon (AMZN) never seemed to rest on its laurels and it eventually became the leading provider of e-commerce services. The company is known for making bold moves and leaving competitors with the jitters when it does.

Amazon Carves Out New Markets

Among its bold moves into new markets, Amazon is merging into the transportation field. In February, Amazon was the lead investor in electric-truck maker Rivian. It was also among the investors in a $530 million funding round for self-driving auto startup Aurora Innovation.

Amazon also is exploring the healthcare market, having acquired online pharmacy company PillPack last year for just under $1 billion. Further, Amazon is joining the race to launch a constellation of satellites for broadband internet connectivity to underserved areas.

Not all of its ventures succeed, such as the time Amazon introduced a smartphone. But it’s willing to take bold steps, and sometimes they turn into big winners.

Among its biggest success stories is Amazon Web Services. AWS is the market leader in cloud-based computing services and is highly profitable.

The AWS unit reported revenue of $7.69 billion in the first quarter, up 41% from the year-ago period, with operating income of $2.2 billion. Its current annual run rate is more than $30 billion. Customers range from startup companies to large enterprises, government entities and nonprofits.

Two big competitors for Amazon in cloud computing, Microsoft (MSFT) and the Google unit of Alphabet (GOOGL), are gaining ground. But Amazon continues to hold a comfortable lead. Advertising is another growth market.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,812.24.

The projected upper bound is: 1,973.15.

The projected lower bound is: 1,836.95.

The projected closing price is: 1,905.05.

Candlesticks

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

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. The two candles preceding the falling window were black, which makes this pattern even more bearish.

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).

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 39.0200. This is not an overbought or oversold reading. The last signal was a sell 7 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 54.50. 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 sell 7 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 -100.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -17.900 at 1,899.870. Volume was 9% above average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
1,900.0001,909.4001,876.0001,899.870 5,308,263

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

Moving Averages: 10-period 50-period 200-period
Close: 1,927.96 1,809.33 1,754.06
Volatility: 28 24 45
Volume: 5,012,808 4,386,396 5,698,101

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
AMAZON COM is currently 8.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 42 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH