Amazon.com, Inc. (NASDAQ:AMZN) Oppenheimer’s new price target of $2,085
Shares of Amazon (AMZN – Get Report) are outpacing the impressive gains in both the Nasdaq and the S&P 500 on Monday, as shares are up 1.5% to $1,808 after the company received a price target boost from the analysts at Oppenheimer.
The analysts increased their target $90 per share from $1,975 to $2,085, arguing that Amazon’s cloud unit, Amazon Web Services, will benefit from artificial intelligence integration.
Should Amazon stock rally that far, it will represent a gain of about 15% from current levels. Trailing Netflix (NFLX – Get Report) and Facebook (FB – Get Report) so far in year-to-date performance, Amazon has been surprisingly quiet. Bulls’ hope is that the name will be able to catch up as we move throughout 2019.
The question is, can Amazon hit $2,085, which would represent a new all-time high?
If it holds as support, it increases the strength of Amazon’s newfound base. It would be discouraging to see this level give way as support, but should we get a larger correction in the market, it wouldn’t be all that surprising to see Amazon stock slip, too. If that’s the case, there is plenty of support below. Amazon stock has the 20-day and 200-day moving averages near $1,735 and its prior resistance near $1,700.
On the flip side, should Amazon stock take out its recent highs near $1,825, it opens the door to the $1,850 to $1,860 area. Above $1,860 and AMZN stock could really gain momentum.
While the stock will likely need to rest a bit if such a move occurs in a relatively short period of time, it will make it possible for a run north of $2,000. Worth mentioning is that this level could give Amazon stock trouble, particularly on the first test and if the stock comes in overbought.
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 1,695.94.
The projected upper bound is: 1,906.73.
The projected lower bound is: 1,726.48.
The projected closing price is: 1,816.61.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 64.5687. 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 66.62. 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 6 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed up 33.440 at 1,814.190. Volume was 29% below average (neutral) and Bollinger Bands were 5% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,783.52 1,676.26 1,735.42
Volatility: 27 34 46
Volume: 4,965,756 4,777,690 5,702,738
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.
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 4.5% above its 200-period moving average and is in an upward trend. Volatility is 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 15 periods.
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