Amazon looks amazing

• Posted by Greg Harmon
• on September 21st, 2015

Amazon ($AMZN) has taken over the world of on line sales. Does not matter what you are looking for, Amazon is the place to find it. But the company is so much more. Cloud services, music, kindle and its services, self publishing, Echo. It is hard to keep track.

Yeah, I know they do not earn any money and the PE is about a brazillion when they do make a few cents. But frankly I care more about Prime Delivery coming through the Post Office as they seem to want me to be home and sign for everything. Better fix that Mr Bezos.

What interests me is the chart of the stock price. The chart above shows that price action since the beginning of 2014. It formed a descending triangle for the whole of 2104 and broke it to the upside in January this year. The price hit the target move on the earnings release in April before a minor pullback and consolidation. It ran higher to start July and gapped up to another new high. This move was a 127% extension of the first leg.

Another pullback in a ‘V’ bottom and the stock is back to chasing new highs, as October earnings approaches. Only that spike up day remains before new highs. The momentum indicators are looking bullish too. The RSI is rising in the bullish range while the MACD crossed up to start September and is rising as well. Even the Bollinger Bands® are opening to the upside. A measured move higher would target about 620. And there is now a natural stop loss area at about 540.

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