Amazon.com, Inc. (NASDAQ:AMZN) Is Diving Headlong Into the Grocery Business

Amazon.com, Inc. (NASDAQ:AMZN) Is Diving Headlong Into the Grocery Business

Amazon.com, Inc. (NASDAQ:AMZN) Is Diving Headlong Into the Grocery Business

Amazon.com (NASDAQ: AMZN) fired the shot heard round the grocery world when the tech giant acquired Whole Foods in late 2017 — putting supermarkets on notice that there was a new sheriff in town. Since then, however, the situation has remained largely unchanged. The company has slowly ramped up its brick-and-mortar presence, adding to its growing list of physical locations with Amazon Go, Amazon Books, and Amazon 4-Star locations — but its supermarket aspirations appeared to be treading water.

Now it appears the company is finally set to make a bigger push into the grocery business.

Another way to reach customers

Numerous reports have emerged that Amazon is planning to open stores in key locations around the country, the early stages of a plan to move further into the grocery arena. The company plans to setup anchor stores in high-profile cities like Los Angeles, Philadelphia, and Chicago according to a report in The Wall Street Journal. The e-commerce leader has reportedly signed more than a dozen leases in Los Angeles alone, and other locations are planned for San Francisco, Seattle, and Washington, D.C. Some of these stores could be up and running as early as late 2019.

This follows stories earlier this year that Amazon was planning an entirely new grocery chain — separate and distinct from its Whole Foods business. Many of these new stores would be located in the suburbs, targeting middle-income shoppers. Amazon has long been the destination of high-income consumers, but the company is increasingly focusing on those with lower household incomes. 

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 1,820.30.

The projected upper bound is: 1,781.61.

The projected lower bound is: 1,633.60.

The projected closing price is: 1,707.60.

Candlesticks

A black body occurred (because prices closed lower 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 20 white candles and 30 black candles for a net of 10 black candles.

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 29.4055. This is not an overbought or oversold reading. The last signal was a buy 1 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 34.48. 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 39 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -22.420 at 1,713.230. Volume was 4% below average (neutral) and Bollinger Bands were 8% narrower than normal.

Open     High      Low     Close     Volume___
1,727.7401,728.8901,705.0001,713.230 3,338,476
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,756.10 1,809.74 1,778.48
Volatility: 22 26 34
Volume: 3,573,200 3,441,440 4,413,233

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 3.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AMZN.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AMZN.O and have had this outlook for the last 3 periods.

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