Amazon.com, Inc. (NASDAQ:AMZN) seeks restraining order on Pentagon’s $10 billion contract with Microsoft

Amazon.com, Inc. (NASDAQ:AMZN) seeks restraining order on Pentagon’s $10 billion contract with Microsoft

Amazon.com, Inc. (NASDAQ:AMZN) seeks restraining order on Pentagon’s $10 billion contract with Microsoft

The U.S Department of Defense had announced its plans of increasing efforts towards ensuring better, easier, and efficient access for the U.S military to technology and data from remote locations in 2019. The contract worth $10 billion was named Joint Enterprise Defense Infrastructure Cloud (JEDI). Thanks to Amazon’s impeccable cloud computing services, the tech giant was widely anticipated to end up winning the Pentagon’s project. Pentagon’s announcement of choosing Microsoft for the contract towards the end of the year, however, had left Amazon and analysts in an utter shock.

Amazon Finds It Imperative To Review Political Interference In Pentagon’s Decision

Right after the Pentagon’s decision, Amazon expressed its disappointment and branded the decision as biased as it announced plans of filing against the decision in the U.S court of law. As per the recent development, Amazon declared on Wednesday that a claim has been registered in the court that seeks to prevent Microsoft Corp and the U.S Department of Justice from moving ahead with the formerly announced contract unless the court releases its final verdict regarding Amazon’s protest against the Pentagon’s decision.  

Amazon had expressed its plan of seeking a restraining order from the U.S court that prevents its rival to begin working on the defense department’s project in the past week. In a recent statement, Amazon Web Services was reported quoting that it is well within the U.S law to request a halt on a contract unless a court decides in favor of or against the protests. It further stated that it is imperative to thoroughly evaluate and review the political interference and relevant errors that contributed to Pentagon’s biased decision.  

Jeff Bezos Accuses President Trump Of Inappropriately Interfering In Pentagon’s Decision

According to the sources, owing to the legal complaints including an allegation of conflict of interest, the procurement process is likely to be postponed. Only recently, Amazon boss, Jeff Bezos, had blatantly accused President Trump to have inappropriately interfered in the Pentagon’s decision citing his long-held bias against the tech giant.

Mark Esper, the current defense secretary, on the other hand, has responded with a statement that rejects all claims of bias in Pentagon’s decision. Esper further expressed confidence that the process of selection was entirely free from external influence and that the decision was take in all fairness.

The recent development saw Amazon’s stock drop by a little less than 1% in the stock market on Wednesday. Closing 2019 at around $1,900 in the stock market, Amazon recorded a growth of around 40% last year.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 1,944.69.

The projected lower bound is: 1,828.42.

The projected closing price is: 1,886.55.

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 22 white candles and 28 black candles for a net of 6 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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).

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 73.2782. This is not an overbought or oversold reading. The last signal was a buy 4 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 57.93. 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 13 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 -16. This is not a topping or bottoming area. The last signal was a sell 10 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 down -2.880 at 1,884.580. Volume was 20% below average (neutral) and Bollinger Bands were 13% narrower than normal.

Open     High      Low     Close     Volume___
1,885.1101,889.9751,872.7601,884.580 2,484,613
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1,881.37 1,810.16 1,833.43
Volatility: 15 20 24
Volume: 3,122,623 3,141,360 3,451,216

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 2.8% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 22 periods.

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