Amazon.com, Inc. (NASDAQ:AMZN) Stock Nears All-Time High

Amazon.com, Inc. (NASDAQ:AMZN) Stock Nears All-Time High

Amazon.com, Inc. (NASDAQ:AMZN) Stock Nears All-Time High

Amazon’s stock has risen about 1% today to reach $2,170, which would be an all-time high if it holds up until the market’s close.

The recent runup in the stock — a 25% gain since December — has pushed the company’s valuation close to $1.1 trillion. But the high times on the market come as the company takes some incoming fire on several fronts.

The Federal Trade Commission announced this week it is reviewing hundreds of acquisitions made by Amazon and other tech giants, including many that never were initially reported to regulators. The FTC is looking into whether some of those deals were anti-competitive. Separately, 13 U.S. senators, including surging Democratic presidential hopeful Bernie Sanders, signed a letter to Amazon blasting its “dismal” worker safety record. The letter cites reporting by The Atlantic and others about warehouse employees being driven to hit quotas despite the toll on their health.

Amazon itself, meanwhile, has also walked into a whole other lion’s den. The company revealed in court documents that it is aiming to depose President Trump and other administration officials as part of a complaint over Pentagon contracts awarded to Microsoft. Amazon, which has had operatic levels of conflict with Trump throughout his presidency, believes the bidding process for the $10 billion Joint Enterprise Defense Infrastructure project, or JEDI, was biased.

As to JEDI, Carney described the Defense Department’s surprise decision to spurn Amazon, whose AWS operation is regarded as the leader in cloud computing, as the result of “blatant political interference.” While it is “up to lawyers and judges to decide” if Trump or others get deposed, the company’s claim is aiming to “ensure that a proper decision was made on the part of U.S. taxpayers.”

The senators’ letter, meanwhile, which was signed by Sanders, Elizabeth Warren, Corey Booker and Kamala Harris, asks for a written response from Amazon to the concerns it outlines about worker safety. “Any practice that puts profits before worker safety is unacceptable,” it reads. “We urge you to take immediate steps to protect your employees from workplace injuries. Your employees’ lives and well-being depend upon your swift action.”

Carney said the company plans to engage with the senators. As to Amazon’s safety record, he said, “Across the country, injuries are woefully under-reported. That was true at Amazon a number of years ago and we changed the way we report injuries. That spiked the numbers for us. We report well above what’s required by OSHA. But we did it because we wanted the data. We wanted to know exactly what was happening.” He said the company’s fulfillment centers “are open to public tours” and the company has invited “every member of Congress” to take a tour. “Far less than a majority of those senators have ever visited one,” he said. “We’d love to have all of them come.”

As to the FTC inquiry, Carney said the main deal he could speak to during his tenure was the acquisition of Whole Foods in 2017. “You would have thought” based on media coverage at the time, he said, “that Amazon was taking over grocery in America.” In fact, he said, “Whole Foods is one of the smallest grocery chains in America.” Post-acquisition, Amazon controls about 3% or 4% the total grocery business, he said. “I don’t see the argument that we’re somehow anti-competitive.”

Summing up the critiques of the Whole Foods deal — and perhaps the company’s entire week (though it’s only half-over) — Carney added, “We have both well-meaning critics and self-serving, self-interested critics. We try to work with the former and politely disagree with the latter.”

Technical Indicators

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 1,932.18.

The projected upper bound is: 2,252.79.

The projected lower bound is: 2,081.58.

The projected closing price is: 2,167.18.

Candlesticks

A black body occurred (because prices closed lower 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 22 white candles and 28 black candles for a net of 6 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 85.8111. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 18 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 81.29. 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 27 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 8 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 9.200 at 2,160.000. Volume was 2% below average (neutral) and Bollinger Bands were 236% wider than normal.

Open     High      Low     Close     Volume___
2,163.2002,180.2502,155.2902,160.000 3,334,264
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 2,054.74 1,874.76 1,841.63
Volatility: 40 29 26
Volume: 5,987,414 3,826,814 3,536,093

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 17.3% 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 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 36 periods. Our momentum oscillator is currently indicating that AMZN.O is currently in an overbought condition.

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