Amazon.com, Inc. (NASDAQ:AMZN) streaming device has had a strong start to the year

Amazon.com, Inc. (NASDAQ:AMZN) streaming device has had a strong start to the year

Amazon.com, Inc. (NASDAQ:AMZN) streaming device has had a strong start to the year

Amazon ‘s (NASDAQ: AMZN) streaming device has had a strong start to the year. The company announced it reached 30 million active accounts on its Fire TV devices in January, and it’s already grown by about 4 million users so far this year. Jen Prenner, Fire TV general manager, recently announced at an industry event that the company reached 34 million active accounts.

For both Amazon and Roku investors, it’s important to understand where Amazon’s Fire TV growth is coming from and its potential to keep growing.

Amazon claims Fire TV has grown to become the No. 1 streaming platform in the U.S., U.K., Germany, India, and Japan. It sells at least some version of Fire TV in several dozen countries, and the device works with Prime Instant Video in dozens more. Roku’s sales footprint is comparably smaller, with operations focusing on North America, parts of Latin  America, the U.K., and France.

Indeed, Amazon’s success in international markets may be propelling its Fire TV user growth. Amazon launched Fire TV in India about two years ago as it was making a push with Prime and its original video content in the massive market. Prime Video quickly became more popular in India than Netflix , so it’s no surprise the affordable Fire TV Stick is popular in the market. Prime Video’s also extremely popular in Germany and Japan, which also made Prenner’s list.

The international market presents a massive opportunity for streaming platforms like Fire TV and Roku. Adoption is still in the relatively early stages in many markets. Roku, in fact, outlined plans to increase its investment in international markets in its fourth-quarter letter to shareholders.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,948.08.

The projected lower bound is: 1,799.65.

The projected closing price is: 1,873.86.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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 67.4597. This is not an overbought or oversold reading. The last signal was a buy 2 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 49.05. 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 -35. This is not a topping or bottoming area. 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 11 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -38.570 at 1,869.000. Volume was 1% above average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
1,893.0501,910.5301,867.3301,869.000 4,736,618

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

Moving Averages: 10-period 50-period 200-period
Close: 1,888.97 1,833.44 1,755.69
Volatility: 31 26 46
Volume: 5,097,440 4,455,695 5,649,332

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 6.5% 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 4 periods.

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