Why I Did Not Invest in Amazon...yet

We all know Amazon is one of the best company in thr world.

It is one of the stock that I always wanted to own.

I almost wanted to buy 3 stocks of Amazon yesterday.
Currently, on 16 Nov it is trading at USD1739.



After I take a look at the stock price and do some simple technical analysis, I have decided to continue to monitor this stock under my Watchlist.


Here are the reasons why I did not make an investment move yet.

Technical Analysis

Using Renko Chart Analysis
Renko Chart showing a downtrend.
However, it seems that it is hovering at the support line.
It might bounce back.




Using Support and Resistance Line Analysis
The current price at USD1739 is approaching the support line.
If it goes between USD1672 to USD1697, I may enter some position.
Expect that once it enter these price range, it should bounce back.
If it breaks USD1672, it may go all the way to USD 1310.
I need to continue to monitor it.





And below is probably the top reasons why I did not invest in Amazon yet:

Heikin Aishi, MACD, RSI and EMA Analysis
- Heikin Aishi candle chart is on the downtrend
- MACD lines is on the downtrend
- MACD histogram is on the downtrend
- RSI is just normal, if oversold, would have a stronger reason to buy
- Exponential Moving Average 50 seems like has cross below Exponential Moving Average 200! This is not so good, as this may indicate a potential long term downtrend.
- I can see that the EMA lines are flat, which is why the price is going sideways now.





Conclusion
In conclusion, for now, the chart is not showing any strong reason to buy yet.
Amazon should be still going sideways or go lower.

The reason for the downtrend is because the recent quarterly report is not so promising.
This is because they have invested heavily for 1-day shipment for the e-commerce business.

We need Amazon to show some indication of recovery before the stock price recover and hit a new high.

Amazon is still a good business.
It has a strong market share in ecommerce.
The Amazon Web Services is going strong. They are still the market leader.

In fact, Warren Buffet's team has also invested in this company few months back this year.

Surely, this is just a short term challenge that Amazon is currently facing now.
We expect this giant company to be able to overcome this bumpy season soon.


Happy Investing :)