Amazon.com, Inc. (NASDAQ:AMZN) is far from cheap, but the bull case is still intact

Amazon.com, Inc. (NASDAQ:AMZN) is far from cheap, but the bull case is still intact

Amazon.com, Inc. (NASDAQ:AMZN) is far from cheap, but the bull case is still intact

Shares of Amazon have skyrocketed over 500% during the last five years, crushing its industry’s 108% climb. AMZN’s growth has been steady over the last three years, up 240%. Amazon has also seen its stock price surge over 54% year to date.

Amazon’s valuation picture is one of the only real concerns for some investors because it has remained sky-high.

Looking ahead, AMZN’s Q3 revenues are projected to climb by over 30% to hit $56.91 billion, AMZN’s full-year sales are expected to reach $234.82 billion, which would represent a roughly 32% climb.

Amazon’s third-quarter EPS figure is projected to jump from $0.52 in the year-ago period to $3.21 per share. The firm’s fiscal 2018 earnings are expected to skyrocket 279%.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 1,956.75.

The projected lower bound is: 1,827.24.

The projected closing price is: 1,891.99.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 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 96.0183. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 66.71. 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 9 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 166.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 24.040 at 1,886.520. Volume was 10% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
1,861.0001,891.5101,854.5001,886.520 3,963,017

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

Moving Averages: 10-period 50-period 200-period
Close: 1,823.35 1,749.18 1,459.42
Volatility: 29 23 34
Volume: 5,460,695 4,246,912 4,744,192

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 29.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AMZN.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 71 periods. The security price has set a new 14-period high while our momentum oscillator 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