Score 8.4 (out of 10): AMAZON.COM INC sets up for +4.2% rally in 2 weeks

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What’s Going On Here?

AMAZON shares have been disappointing this year, underperforming the other FANG stocks. While the focus seems to have been on the company’s retail business (boosted by last year’s stimulus cheques and online ordering), AMAZON’s Web Service segment (cloud computing) saw a revenue increase by +39% Year-over-Year and will likely keep growing strongly.

Why Now?

AMAZON.COM INC has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, AMAZON.COM INC shares had a median return of +4.2%, over the following 2 weeks – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for AMAZON.COM INC received a high score of 8.4 (out of 10). This insight was generated on 2021- December-30 with last price of 3384.02.

What’s This Company About?

AMAZON.COM INC is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 21.5% more (average). Ticker symbol: AMZN US.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 3525.61 (+4.2%) has been reached. Based on AMAZON.COM INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 3178.72 (last price at 3384.02), which is equivalent to a -6.1% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

4.5% (October-2021), 5.1% (August-2021), 3.8% (May-2021), -0.2% (March-2021), – 0.3% (November-2020), 9.5% (September-2020), 5% (March-2020), 2% (October-2019), -0.6% (August-2019), 5.9% (June-2019).

Historical Chart:

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Summary:

NameAMAZON.COM INC
ViewUp
Star (1 to 10)8.4
Target+4.2%
Time2 weeks
Hit Rate70%

Popular Insights:

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