Amazon.com, Inc. (NASDAQ:AMZN) own 5.8% in the closing minutes of Monday trading

Amazon.com, Inc. (NASDAQ:AMZN) own 5.8% in the closing minutes of Monday trading

Amazon.com, Inc. (NASDAQ:AMZN) own 5.8% in the closing minutes of Monday trading

Shares of Amazon.com (NASDAQ: AMZN) are down 5.8% in the closing minutes of Monday trading, falling as rumors begin to swell about an imminent investigation into the company for anti-competitive business practices.

As Reuters reported today, representatives of the U.S. Department of Justice’s (DOJ) Antitrust Division and the Federal Trade Commission (FTC) have been meeting in recent weeks to discuss a division of labor in investigating several tech giants — Alphabet, Apple, and Facebook among them — but also Amazon.com.

So what

According to the report, the FTC will be looking into these questions at Amazon and Facebook. The DOJ will take on investigating Apple and Alphabet. Antitrust concerns appear to lie at the core of the government’s moves in all four cases.

No word yet on what either agency intends to do next, but a request for information about the matters that concern them — followed by a wholehearted response from the companies to “cooperate fully” — is the way these things normally proceed.

Now what

It’s important to keep in mind that just because the government is looking doesn’t mean it will open up an official probe into all — or any — of the companies. And it’s much less likely that it will necessarily find one or more of them guilty of monopolistic behavior.

Just the chance that that will happen, however, appears to be enough to put investors into “shoot first, and ask questions later” mode — and Amazon is now in their bullseye.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 1,770.66.

The projected lower bound is: 1,609.66.

The projected closing price is: 1,690.16.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 11.7688. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 12 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 27.19. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 23 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 -257.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 21 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -82.380 at 1,692.690. Volume was 102% above average (neutral) and Bollinger Bands were 42% wider than normal.

Open High Low Close Volume___
1,760.0101,766.2901,672.0001,692.690 9,098,708

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,815.46 1,853.04 1,753.20
Volatility: 31 28 46
Volume: 4,287,723 4,312,559 5,660,126

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 down today (bearish) 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 3.5% below its 200-period moving average and is in an downward trend. Volatility is high 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 14 periods. Our momentum oscillator is currently indicating that AMZN.O is currently in an oversold condition.

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