AMZN | Bearish still potentially continue
Updated
Amazon is one of growth stocks with more than 20% growing sales per year. This growth sales likely will continue in future potentially with larger reached customers by Amazon. I do not have any significant complaint about the fundamental of Amazon, except for the high valuation of stock. According to the lowest P/E in the last 7 years, US$ 109 seems reflected the P/E. Probably that is the reason, AMZN rebounded around 101.87 lately.
But, technically, I still see bears pressure strong on the AMZN. And AMZN still has a high chance to breakdown 101.87 and going lower. Right now, AMZN moving sideways and has a high chance to test again near resistance around 125-129. Only if bulls can break the resistance, and maintain price above it, then we can expect AMZN will stop the dropping. Otherwise, AMZN is continuing going lower and making P/E lower and more attractive to investors.
But, technically, I still see bears pressure strong on the AMZN. And AMZN still has a high chance to breakdown 101.87 and going lower. Right now, AMZN moving sideways and has a high chance to test again near resistance around 125-129. Only if bulls can break the resistance, and maintain price above it, then we can expect AMZN will stop the dropping. Otherwise, AMZN is continuing going lower and making P/E lower and more attractive to investors.
Note
AMZN moving upward for the last couple days after testing 101.8. But, in my opinion, this is not the time to think bullish. Because this upward movement is a kind of bearish counter trend correction. I still see resistance 147-144 will potentially stop the AMZN movement and drop it again down to test again the support 101.8. So, the market now normalizing the valuation of AMZN. It can be done by two ways:
First is market makes the AMZN move sideways between 101.8-144. For this happen, the AMZN has to give increasing profit or better profits for the next period to come
Second is market will drop down more the AMZN and breakout 101.8. For this happen, the AMZN results stagnant profits or lower profits for the next period to come.
Which one of the AMZN scenario above will happen? Nobody knows. But, because the AMZN is one of wonderful companies, the cheaper the stocks, the best opportunity you have to start collect this stock.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.