Berkshire Hathaway, finally, has invested in Amazon.com, Inc. (NASDAQ:AMZN)

Berkshire Hathaway, finally, has invested in Amazon.com, Inc. (NASDAQ:AMZN)

Berkshire Hathaway, finally, has invested in Amazon.com, Inc. (NASDAQ:AMZN)

Warren Buffett said Berkshire Hathaway Inc has bought shares of internet retailing giant Amazon.com Inc for the first time, though he has not been the one doing the buying, CNBC reported on Thursday.

Buffett said the purchase was made by one of his investment managers, Todd Combs or Ted Weschler, and details would be disclosed later this month in Berkshire’s quarterly report of its U.S. stock holdings.

The purchase marks a U-turn for Berkshire, where Buffett has long praised the leadership of Amazon Chief Executive Jeff Bezos.

“Yeah, I’ve been a fan, and I’ve been an idiot for not buying,” Buffett told CNBC.

Buffett’s assistant did not immediately respond to a request for comment. Amazon did not immediately respond to a similar request.

Shares of companies often rise when Berkshire reveals its support through new stakes, even when the purchases are believed or known to have been made by Combs or Weschler, who together invest about $26 billion.

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 1,803.04.

The projected upper bound is: 1,967.28.

The projected lower bound is: 1,845.51.

The projected closing price is: 1,906.39.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 31.9094. This is not an overbought or oversold reading. The last signal was a sell 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 60.88. 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 2 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 19. This is not a topping or bottoming area. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -10.700 at 1,900.820. Volume was 23% below average (neutral) and Bollinger Bands were 29% narrower than normal.

Open High Low Close Volume___
1,913.3301,921.5501,881.8701,900.820 3,962,915

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

Moving Averages: 10-period 50-period 200-period
Close: 1,910.47 1,779.52 1,751.38
Volatility: 23 22 45
Volume: 4,357,872 4,156,203 5,677,668

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 8.5% above its 200-period moving average and is in an upward trend. Volatility is 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 37 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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