Can Amazon See New Highs this Year?
T = Trends for a Stock’s Movement
Amazon serves its customers through its retail websites and focus on selection, price, and convenience. The company also manufactures and sells Kindle devices. Amazon offers programs that enable sellers to sell their products on the company’s websites including the sellers’ own branded websites and fulfill orders through them. It also offers platforms that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Online commerce has been on the rise because of the convenience, efficiency, and the relatively low prices offered.
Amazon is still dominating the e-commerce world, as recent data from the Securities and Exchange Commission seen by The Wall Street Journal shows that brick-and-mortar retailers are still having a difficult time making headway in online retail. The SEC asked a group of major retailers including Target (NYSE:TGT) and Staples (NASDAQ:SPLS) about their online performance, and data showed that Amazon still sells more online than its next 12 competitors combined.
T = Technicals on the Stock Chart Are Strong
Amazon stock has been flying higher over the past few years. The stock is now pulling back from all-time high prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Amazon is trading above its rising key averages, which signals neutral to bullish price action in the near term.