The gravity-defying Amazon.com Inc stock continued to scale higher in the new month, recording its all-time high after every breakout. As of yesterday, Monday the last day of August 2020, Amazon stock closed at $49.16 higher than the opening price, around $3401. Meanwhile, Amazon is one step closer to its drone delivery.
At the time of writing, Amazon stock was up slightly above 1%, trading around $3499. The recent breakout on Amazon share value has come with a heavy price especially during the pandemic.
Led by the current recorded richest man in the world Jeff Bezos, the company has put in place measures to see its business grow amid the market disruption as it takes good care of its employees.
Having withstood the second quarter of the year when the pandemic was at its peak, Amazon seems set to even come out stronger post COVID era. The company might be highly motivated by the increasing competition from global and local companies, especially in the e-commerce sector.
As the company continues to venture out new revenue avenues and improve on the current infrastructure, Amazon leadership faces heightened friction with different jurisdictions’ authorities.
Amazon has been granted approval by the U.S. Federal Aviation Administration (FAA), which will allow it to start trialing commercial deliveries through its drone system.
The MK27 drones, developed in a way to function independently from human interaction, are expected to be rolled out in delivering maximum 5 lb goods to its customers.
Once rolled out, the drone system will reduce its backlog of unfulfilled deliveries timeline, hence putting it at a better vantage point than its competitors.
In addition, it will assist the company in reducing the fuel run engines in its goal of clean energy consumption.
This will mean the company will be a bigger employer both in the United States and also in the global market. As a result, its sales and revenue will skyrocket which will be a big booster to its current $1.7 trillion market capitalization.
Consequently, with investors gaining more confidence in Amazon stock, its value will shoot even higher.
Amazon.com, Inc. offers a range of products and services through its Websites.
The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.
It operates through three segments: North America, International and Amazon Web Services (AWS). Its AWS products include analytics, Amazon Athena, Amazon CloudSearch, Amazon EMR, Amazon Elasticsearch Service, Amazon Kinesis, Amazon Managed Streaming for Apache Kafka, Amazon Redshift, Amazon QuickSight, AWS Data Pipeline, AWS Glue and AWS Lake Formation.
AWS solutions include machine learning, analytics and data lakes, Internet of Things, serverless computing, containers, enterprise applications, and storage. In addition, the Company provides services, such as advertising.
It also offers Amazon Prime, a membership program that includes free shipping, access to streaming of various movies and television (TV) episodes.
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 2,976.21.
The projected upper bound is: 3,721.45.
The projected lower bound is: 3,308.20.
The projected closing price is: 3,514.83.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.4439. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 1 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 70.90. 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 3 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 139.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 17 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed up 48.160 at 3,499.120. Volume was 100% below average (consolidating) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume 3,489.580 3,513.870 3,467.000 3,499.120 5,748
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,369.02 3,106.07 2,331.41 Volatility: 24 43 44 Volume: 3,761,473 4,745,508 4,722,688
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.
AMAZON COM is currently 50.1% 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 10 periods. Our momentum oscillator is currently indicating that AMZN.O is currently in an overbought condition.
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