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Is It Time To Follow Jeff Bezos and Dump Amazon (NASDAQ:AMZN) Stock?

$AMZN #Amazon #OnlineShopping #USA #Nasdaq #Stocks #Trading

Amazon
Ticker: NASDAQ:AMZN
Price: $3322.00

Amazon News

Jeff Bezos sold 1 million shares of his Amazon stock on Monday and Tuesday this week, according to new filings with the Securities and Exchange Commission.

The sale, which is worth $3 billion, helped increase the Amazon founder?s net worth by $10.5 billion on Wednesday, Bloomberg reported, one of the largest increases in a single day. It was part of a prearranged trading plan intended to comply with insider trading regulations. Bezos? ownership stake in the company is now 10.6%. He has sold about one-fifth of his holdings since the company went public in 1997, according to Bloomberg.

Amazon stock was trading between $2,950 and $3,075 per share on the days of the sale. The company?s stock value has surged by 75% this year as online shopping has increased during the pandemic. The company has also continued to expand its grocery delivery and cloud computing services. At its initial IPO in 1997, Amazon stock debuted at $18 per share.

Combined with two previous sales earlier this year, Bezos has now sold more than $10 billion worth of Amazon shares in 2020. According to Forbes, his estimated net worth is $189.6 billion, keeping him in the top spot of the world?s richest people.

Business Summary

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.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,571.73.

The projected lower bound is: 3,067.48.

The projected closing price is: 3,319.60.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 73.3548. This is not an overbought or oversold reading. The last signal was a buy 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 56.85. 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 44 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 152.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 1 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 12 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 80.840 at 3,322.000. Volume was 11% above average (neutral) and Bollinger Bands were 2% narrower than normal.

Open        High        Low        Close      Volume
3,319.970   3,366.800   3,288.880  3,322.000  5,789,285
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           3,172.38      3,206.35       2,646.99
Volatility:      60            50             50
Volume:          5,902,338     5,367,066      5,268,263

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

AMAZON COM is currently 25.5% above its 200-period moving average and is in an upward 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 bullish on AMZN.O and have had this outlook for the last 18 periods.

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