Amazon.com, Inc. (NASDAQ:AMZN) reinvents shopping yet again

Amazon.com, Inc. (NASDAQ:AMZN) reinvents shopping yet again

Amazon.com, Inc. (NASDAQ:AMZN) reinvents shopping yet again

Amazon.com (NASDAQ:AMZN) has decimated shopping malls by causing numerous retailers to go out of business — or at least reduce their store counts. Now, it could be setting itself up to be the mall’s savior.

Amazon is opening a new kind of retail store in partnership with Good Housekeeping magazine that has the potential to change the way we shop yet again. In doing so, it could strengthen the mall as a viable place to shop.

A new way to shop

Called GH Lab, Amazon’s new, experimental pop-up store has opened in the Mall of America in Bloomington, Minnesota. It carries merchandise recommended by Good Housekeeping, though the store has no inventory. It’s more of a showroom than anything else.

Each item on display has a special Amazon SmileCode, which is Amazon’s version of a QR code. Using the camera function in their Amazon app to scan the SmileCode, customers can pull up the item’s product detail page and add it to their Amazon cart. When the purchase is complete, Amazon handles the fulfillment/shipping process.

This is a radical concept for several reasons. First, it is a relatively low-cost operation. There is no inventory on hand in the backroom — only what’s on display — and minimal staff is needed. Second, it can be replicated easily. This type of store could fill all those empty storefronts in the mall.

Another benefit, at least for Amazon, is that it overcomes a resistance point that some more-traditional shoppers have towards e-commerce: It allows them to have the in-person experience of seeing and touching an item before buying.

Amazon hinted at this sort of future shopping experience during Black Friday last November when it opened a prototype pop-up store in London displaying goods that could be purchased using SmileCodes.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 1,882.41.

The projected lower bound is: 1,692.98.

The projected closing price is: 1,787.70.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 20.9233. This is not an overbought or oversold reading. The last signal was a buy 0 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 36.55. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 6 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 69.250 at 1,788.610. Volume was 97% above average (neutral) and Bollinger Bands were 90% wider than normal.

Open High Low Close Volume___
1,808.0001,808.9501,742.5301,788.610 9,444,587

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

Moving Averages: 10-period 50-period 200-period
Close: 1,872.55 1,922.00 1,642.01
Volatility: 46 32 33
Volume: 7,473,685 5,145,009 5,099,881

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 8.9% above its 200-period moving average and is in an downward 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 bearish on AMZN.O and have had this outlook for the last 8 periods.

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