Company info
Amazon.com, Inc. is a company that engages in the retail sale of consumer products and subscriptions internationally and North America. It sells merchandise and content purchased for resale from third-party sellers. The company also manufactures a range of electronic devices.
Sector analysis
The main ETF that tracks this sector is the Vanguard Consumer Discretionary ETF. Over the last four months, the ETF has been on a decline. Mainly led by inflation worries. AMZN has also been following a similar pattern. So, I would keep an eye on this ETF. If you see the ETF falling, you can expect AMZN to possibly follow suit.
Double Bottom Analysis
Type:
Eve and Adam
Length between Valleys:
5 weeks
Volume Trend:
None
Breakeven Failure Rate:
12%
Throwback Rate:
67%
Average Rise:
42%
Price Target:
3677.06
Percentage Change:
14%
The length between the two valleys is 5 weeks. This is ideal. As it means the strength of this double bottom could potentially be stronger. There isn’t a volume trend for AMZN between the two valleys. The volume seems to be higher on these two valleys compared to prior price movements but that’s it. Also, just like the stock above, AMZN is near its all-time high which could pose some issues concerning potential upward movement. However, this is a major blue-chip stock. This means two things. The positive is that the stock is are already near the confirmation line and has great volatility to break through and maybe reach the price target. The negative is that you will have to look out for any news concerning this stock to see if there is something that could lead to a throwback or a breakeven. Furthermore, as stated above, the stock has been on a decline along with the ETF, so there could be a rebound upward and this double bottom could be profitable, or the stock could rebound now and fall downwards after hitting the confirmation line that can act as a resistance level. So, I would pay attention to the ETF. Watch any news concerning Amazon and inflationary issues so gauge if the stock will break through the confirmation line and if this chart pattern will work. Henceforth I am giving this double bottom a pattern strength of 2/5
Amazon.com, Inc. is a company that engages in the retail sale of consumer products and subscriptions internationally and North America. It sells merchandise and content purchased for resale from third-party sellers. The company also manufactures a range of electronic devices.
Sector analysis
The main ETF that tracks this sector is the Vanguard Consumer Discretionary ETF. Over the last four months, the ETF has been on a decline. Mainly led by inflation worries. AMZN has also been following a similar pattern. So, I would keep an eye on this ETF. If you see the ETF falling, you can expect AMZN to possibly follow suit.
Double Bottom Analysis
Type:
Eve and Adam
Length between Valleys:
5 weeks
Volume Trend:
None
Breakeven Failure Rate:
12%
Throwback Rate:
67%
Average Rise:
42%
Price Target:
3677.06
Percentage Change:
14%
The length between the two valleys is 5 weeks. This is ideal. As it means the strength of this double bottom could potentially be stronger. There isn’t a volume trend for AMZN between the two valleys. The volume seems to be higher on these two valleys compared to prior price movements but that’s it. Also, just like the stock above, AMZN is near its all-time high which could pose some issues concerning potential upward movement. However, this is a major blue-chip stock. This means two things. The positive is that the stock is are already near the confirmation line and has great volatility to break through and maybe reach the price target. The negative is that you will have to look out for any news concerning this stock to see if there is something that could lead to a throwback or a breakeven. Furthermore, as stated above, the stock has been on a decline along with the ETF, so there could be a rebound upward and this double bottom could be profitable, or the stock could rebound now and fall downwards after hitting the confirmation line that can act as a resistance level. So, I would pay attention to the ETF. Watch any news concerning Amazon and inflationary issues so gauge if the stock will break through the confirmation line and if this chart pattern will work. Henceforth I am giving this double bottom a pattern strength of 2/5