False Alarm With Amazon.com, Inc. Crash

False Alarm With Amazon.com, Inc. Crash

Incorrect stock data on the popular Google Finance, Yahoo Finance and Bloomberg sites appeared to be freaking out some investors Monday evening, after test data was apparently misinterpreted by third-party providers to those sites. As part of its normal process, the UTP distributed test data and certain third parties improperly propagated the data. Nasdaq is working with third-party vendors to resolve the matter. The spokesman speculated that the day’s early close might have caused confusion with some closing prices for a number of third parties, including Bloomberg and Yahoo, but emphasized that no trades were affected by the erroneous quotes.

Highlights

  • Amazons plans to buy Whole Foods Market Inc.
  • Amazon did not crash
  • Sales increased 60% over last year

The Company announced a major expansion into brick-and-mortar retailing with the acquisition of Whole Foods (WFM), and last week had record results for their “Prime Day 2017” promotion. Sales increased 60% over last year, with some estimates putting single day sales at almost $2 billion, making it Amazon’s biggest day ever, surpassing the records previously set on Black Friday and Cyber Monday.

Technical Analysis

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 1,063.77.

The projected lower bound is: 997.06.

The projected closing price is: 1,030.42.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 90.6452. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 65.06. 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 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 141.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 5 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 4.370 at 1,028.820. Volume was 35% below average (neutral) and Bollinger Bands were 23% wider than normal.

Open           High            Low              Close            Volume
1,025.000  1,031.590    1,022.500   1,028.820   2,351,316

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

Moving Averages: 10-period    50-period    200-period
Close:                       1,000.68      984.45        865.47
Volatility:                16                  22                23
Volume:                   3,109,534    3,768,266  3,737,739

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 18.9% 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 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 1 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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