The tech sector has changed our way of life during the pandemic. Things like food and grocery delivery that were once considered a convenience are now a necessity.
In the retail sector, Amazon’s takeover this year is nothing short of spectacular. The e-commerce juggernaut became a trailblazer in the remote-economy, expanding its operations to meet increased demand. In its most recent quarter, revenue grew by 37% and net income tripled year-over-year to $6.3 billion.
Many view this surge in earnings as a short-term success story but there are many signs that point towards continued growth. For one, Amazon had a strong foothold in the retail sector long before the pandemic.
The change in shopping habits this year only strengthened its already growing dominance. Amazon now accounts for more than 40% of online spending in the U.S.
A second factor is the company’s efforts to get into grocery storefronts which is one of its most lucrative segments. The e-commerce giant is making headway in this space with cashier-less stores like Go and Fresh. As Amazon continues to grow its retail footprint with physical stores, it can compete directly with companies like Target (NYSE:TGT) and Walmart (NYSE:WMT).
Finally, Amazon’s foray into the cloud sector has also proven to be successful in the remote work environment. After its e-commerce business, the company’s cloud platform, Amazon Web Services (AWS) is one of its biggest revenue generators.
The tech giant is likely to see continued success in this segment as companies make the permanent shift to a remote workplace.
Despite its pandemic success, the company still has a lot of upside left. Amazon stock is trending at more than $3,000 but will go much 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.
The projected upper bound is: 3,376.02.
The projected lower bound is: 2,942.50.
The projected closing price is: 3,159.26.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.
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 32.3448. This is not an overbought or oversold reading. The last signal was a sell 5 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 49.30. 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 65 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 7 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed down -4.580 at 3,158.000. Volume was 43% below average (neutral) and Bollinger Bands were 58% narrower than normal.
Open High Low Close Volume 3,156.480 3,180.760 3,141.690 3,158.000 2,751,316
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,169.58 3,186.16 2,763.65 Volatility: 18 43 49 Volume: 3,478,883 4,718,765 5,191,870
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 14.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 0 periods.