Amazon.com, Inc. (NASDAQ:AMZN) ‘Golden Cross’ pattern has formed

Amazon.com, Inc. (NASDAQ:AMZN) ‘Golden Cross’ pattern has formed

Amazon.com, Inc. (NASDAQ:AMZN) ‘Golden Cross’ pattern has formed

Warren Buffet’s company buying Amazon stock wasn’t the only thing that sent money-folks tongues wagging this week. Yahoo! Finance noticed that a ‘Golden Cross’ pattern has formed. After seven weeks of upward momentum, something Amazon has not seen in decades, the stock could be set for further momentum…or a drop. It’s the stock market after all.

Used by technicians, a golden cross is when the stock’s short-term moving average, such as the 50-day, crosses above its longer-term moving average like the widely followed 200-day moving average. This is typically seen as a bullish indicator since there’s demand to the upside, which in turn could be an indication that investors believe the stock is poised to break out.

Freightwaves broke the news that Amazon Freight is now accepting customers as it pushed freight.amazon.com live and began undercutting prices from 26% to 33%. Freightwaves believes the move is to lower Q4 costs but also to reduce reliance on trucking in the piece:

Amazon already moves an enormous amount of freight through its distribution and sortation centers and has an extensive network of trucking carriers. For many industry observers, it was only a matter of time before Amazon leveraged the implicit network effect — the total number of shippers and carriers who do business with Amazon — and connected both sides of its business.Part of this business may be to hedge against the volatile price of trucking capacity: by building a large freight brokerage business, AMZN is turning part of its cost into revenue. After all, Amazon is already a top ten international freight forwarder for Asian ocean freight inbound to North America.

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 1,807.25.

The projected upper bound is: 2,034.48.

The projected lower bound is: 1,904.16.

The projected closing price is: 1,969.32.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more 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 52.5054. This is not an overbought or oversold reading. The last signal was a sell 3 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 69.99. 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 3 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 124.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 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 1 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 61.640 at 1,962.460. Volume was 27% above average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
1,949.0001,964.4001,936.0001,962.460 6,381,564

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

Moving Averages: 10-period 50-period 200-period
Close: 1,920.55 1,786.39 1,751.97
Volatility: 29 23 45
Volume: 4,721,040 4,214,166 5,681,162

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 up today (bullish) 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 12.0% 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 38 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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