SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.23+1.8%12:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul R. Drahota who wrote (36148)1/22/1999 7:21:00 PM
From: Rob S.  Read Replies (1) of 164684
 
The stochastic indicator is one that technical analysts watch that has been reliable for predicting Amazon's movement when combined with a few other key indicators. When a couple of other indicators create a complimentary set of conditions, then the odds increase that a shift in direction will occur. In this case take a look at this combination of indicators (some additional ones might also ad to the argument):

The stochastic indicator dropped rapidly from JAN 8th when it was at over 95 through the 80 negative indicator crossing point and down to the 20 crossing point (negative extreme crossing point). You have to interpret these indicators differently for each stock or sector. Amazon has been very predictable by only momentarily staying at the extreme of this indicator, particularly after large, quick movement down. Amazon must be made of natural rubber from the jungles because it bounces well.

Then you might look at the extent of the typical drop in the stock. Amazon has dropped rapidly in the past on a few occasions - particularly when it has moved to the extremes on the upside. But even though it has dropped by 50% a few times, it has managed to bounce back to recover 30% or more of the drop. This time around we don't have the great Christmas season to look forward to boost the enthusiasm to a the fever pitch we have had.

Another indicator that signaled a reversal was the candlestick indicator. This can often give clues to market tops or bottoms. Yesterday we saw pretty much the opposite of the movement of JAN 8th. This was a blow-off to the downside, which brought in renewed speculation.

The RSI indicator was useful in this situation because it showed a significant divergence that indicates that some filling is necessary - sell off was overdone short-term.

My guess is that we will not see a return to the previous highs unless there is some startling information that comes out during Amazon's press release and cc.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News