Amazon.com, Inc. (NASDAQ:AMZN) revealed its plans to develop a satellite network

Amazon.com, Inc. (NASDAQ:AMZN) revealed its plans to develop a satellite network

Amazon.com, Inc. (NASDAQ:AMZN) revealed its plans to develop a satellite network

Amazon is one of the most powerful companies in the world. It has millions of Prime subscribers, owns a fleet of aircraft, streams Emmy-winning shows, and hosts the world’s largest cloud storage platform. The growth of online giants like Amazon may be limited only by the number of people that have access to the internet.

But the majority of the world is still offline. Just over half of the total global population has access to the internet, the UN estimated at the end of last year. Amazon’s latest project aims to change that.

Earlier this month, Amazon announced plans to build a constellation of miniature satellites that will whirl around the planet and deliver cheap, high-speed internet to every corner of the globe.

The initiative, called Project Kuiper, will probably cost billions of dollars and pose enormous technical challenges. But it makes perfect sense for Amazon (AMZN).

If Amazon wants to gobble up some of the untapped markets around the world, mainly in Asia and Africa, it will first have to solve the internet connectivity issue. Getting people online won’t solve poverty, experts say, but it could still spur new businesses and create attractive new economies to do business in.

“Launching their own [satellite] constellation system to provide affordable internet will increase their market for existing services,” Northern Sky Research analyst Shagun Sachdeva said in an email, “and of course open new revenue streams.”

Amazon revealed its plans to develop a satellite network earlier this month. The company was not the first to suggest such a idea. Projects funded by other tech billionaires, including Bill Gates, have failed. Meanwhile, Elon Musk’s SpaceX and Softbank (SFTBF)-backed OneWeb also have very similar plans under development.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 1,929.32.

The projected lower bound is: 1,805.95.

The projected closing price is: 1,867.63.

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 28 white candles and 22 black candles for a net of 6 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 5 rising windows in the last 50 candles–this makes the current rising window even more 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 77.9017. This is not an overbought or oversold reading. The last signal was a sell 3 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 70.50. This is where it usually tops. 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 5 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 2 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 18.170 at 1,863.040. Volume was 45% below average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
1,851.3501,869.7701,848.0001,863.040 3,044,618

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

Moving Averages: 10-period 50-period 200-period
Close: 1,840.49 1,717.15 1,742.47
Volatility: 10 23 45
Volume: 3,421,441 4,144,697 5,641,058

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 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 6.9% above its 200-period moving average and is in an upward trend. Volatility is low 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 26 periods. Our momentum oscillator is currently indicating that AMZN.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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