Amazon.com, Inc. (NASDAQ:AMZN) expanding its digital advertising business and currently sits in third place in the U.S.

Amazon.com, Inc. (NASDAQ:AMZN) expanding its digital advertising business and currently sits in third place in the U.S.

Amazon.com, Inc. (NASDAQ:AMZN) expanding its digital advertising business and currently sits in third place in the U.S.

Amazon AMZN shares have climbed roughly 13% to start the year, which tops the market’s comeback, but falls way behind fellow FAANG giants Facebook FB and Netflix NFLX . Therefore, Amazon stock still rests over 17% below its 52-week high.

Reports surfaced earlier this month that said Amazon is in the midst of rolling out grocery stores throughout the country as it expands its brick-and-mortar footprint. The new stores are set to be distinct from the company’s upscale Whole Foods Market and its newer, cashierless Amazon Go stores. Amazon’s physical retail expansion, which also includes book stores, comes after decades of online retail disruption.

Amazon’s expanded grocery push likely scares Walmart WMT , Target TGT , Kroger KR , and others, who have actively expanded their e-commerce platforms and delivery offerings to better compete with the Seattle giant. And despite Amazon’s Whole Foods purchase, the company reportedly only capture roughly 3% of the total U.S. grocery market last year. This clearly leaves plenty of room for expansion, which should be especially attractive to investors with the company’s e-commerce sales set to slow-based mostly on the law of large numbers.

Amazon is also expanding its digital advertising business and currently sits in third place in the U.S. behind only Google and Facebook. The company’s share of the online ad market is only expected to expand as more consumers start their product searches on Amazon platforms. AMZN has also expanded its pharmaceutical business to try to challenge CVS CVS and Walgreens WBA.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,651.36.

The projected upper bound is: 1,792.85.

The projected lower bound is: 1,597.28.

The projected closing price is: 1,695.07.

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 28 white candles and 22 black candles for a net of 6 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 79.4645. This is not an overbought or oversold reading. The last signal was a sell 5 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 58.28. 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 52 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 98. This is not a topping or bottoming area. The last signal was a sell 4 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 2 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 17.710 at 1,690.810. Volume was 43% below average (neutral) and Bollinger Bands were 61% narrower than normal.

Open High Low Close Volume___
1,683.0001,700.0001,679.3501,690.810 3,552,041

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

Moving Averages: 10-period 50-period 200-period
Close: 1,665.04 1,637.30 1,728.76
Volatility: 30 38 45
Volume: 4,251,257 5,227,873 5,594,908

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 2.2% below its 200-period moving average and is in an upward trend. Volatility is low 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 2 periods.

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