Go Wild with Amazon (NASDAQ:AMZN)
Posted on: Mar 3rd, 2009 | By Charles Delvalle | Filed under Chart of the Day
A few nights ago, I was watching an interview with Jeff Bezos, the CEO and founder of Amazon Amazon.com (NASDAQ:AMZN) on “The Daily Show.”
The big topic of discussion was Kindle 2, Amazon’s new wireless reading device.
Frankly, the news bores me to death.
I read real books and magazines. And when I don’t, I read off of my laptop. But Oprah loves Kindle 2. So there’s got to be something to it.
Kindle 2 isn’t going to make or break Amazon. But it’s certainly given them an online publicity boost. And it’s focused attention on the company’s stock price.
As you can see, after bottoming in November Amazon has seen a nice little boost in share prices.
Part of this boost is due to the solid sales figures Amazon released in January.
It seems that even though consumers are cutting back on spending they’re still looking for deals online. And they’re spending in places like Amazon.
That puts AMZN in a good position to weather this recession. And this should give AMZN the fuel it needs to break above its 200-day moving average and move higher this year.
Look at the Slow Stochastic (at the bottom of the chart). You’ll see that even though it has been moving down, Amazon’s stock price hasn’t followed.
This bullish diversion (explained here) is another signal that AMZN shares should move higher in the coming months.
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth". 
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