Amazon.com, Inc. Technical Picture Is Bullish Short Term, Bearish Overall
Amazon.com, Inc. (NASDAQ: AMZN) has rebounded after testing the projected support at $320.66 and may have more of a rally left before the counter-trend rally runs its course.
With upside projected at $362.93, is it worth buying?
Here is a recap of Benzinga's last report on Amazon:
- Amazon had rebounded modestly following the post-earnings blow up that occurred in late July.
- Analysts and investors had grown weary of seeing the company defer making profits on its strong income and cash flow.
- The bulls liked Amazon's cheap price-to-sales ratio, huge cash position and positive cash flows.
- The bears were focused on Amazon's high valuation metrics (P/B of 14.77, P/E of 150), poor performance following the latest earnings report and the stock's poor relative strength.
Amazon shares have rebounded nicely off of the $320 level. If the current upside is the "c" leg of an "abc" upside correction, then the projected technical target will come in at $362.93. Short term, the support for Amazon comes in at $319, with $304.59 as secondary support.
Bulls will be looking to buy Amazon on any pullback to near $319-320 with stops in place on any close below $319. Bears may be in for some pain short term if they continue betting against Amazon shares at current levels. However, they may still have the advantage over the bulls in the intermediate term.
At time of publication, shares of Amazon were trading at $330.11.
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