Prime Time for Amazon.com, Inc. (NASDAQ:AMZN)

Prime Time for Amazon.com, Inc. (NASDAQ:AMZN)

Prime Time for Amazon.com, Inc. (NASDAQ:AMZN)

AMZN’s earnings report comes soon after its most recent “Prime Day” event that took place July 15-16. The event is designed to spark sales volume during what’s traditionally been a seasonal slow period for the company, and analysts were looking for sales of more than $6 billion associated with the event.

It could also be interesting to see if the event drove any incremental growth in Prime subscribers for the company, who tend to spend more than non-Prime customers.

Last time out, AMZN’s quarterly results easily beat analysts’ estimates for earnings per share, but came in just on target with revenue. One concern is that revenue growth at the company has been slowing down a little even as profits remain strong thanks in part to the cloud business. Amazon’s cloud service saw solid growth with a 41% sales increase, although that was below the previous year’s 49% growth rate.

Looking back at guidance for Q2, AMZN said net sales are expected to be between $59.5 billion and $63.5 billion, or to grow between 13% and 20% compared with Q2 2018. The revenue guidance was slightly below what some on Wall Street had expected. 

Something else to potentially keep an eye on with AMZN are its advertising revenues, where growth slowed pretty significantly in Q1. Also, the company’s spending plans continue to get a close look from analysts.

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 1,901.37.

The projected upper bound is: 2,072.55.

The projected lower bound is: 1,913.17.

The projected closing price is: 1,992.86.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 52.1617. This is not an overbought or oversold reading. The last signal was a sell 3 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 62.88. 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 1 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 56. This is not a topping or bottoming area. The last signal was a sell 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 buy 26 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -17.870 at 1,992.030. Volume was 37% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
2,007.0502,012.0001,992.0301,992.030 2,558,809

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

Moving Averages: 10-period     50-period     200-period
Close: 1,987.49 1,883.70 1,746.90
Volatility: 16 28 46
Volume: 3,146,504 3,828,027 5,443,875

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 14.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 20 periods.

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