Amazon is quite frankly like nothing I have ever seen in terms of long-term growth perspective. With its recent and long-term parabolic move, will this stock just continue to go higher and higher?
I think a pullback is necessary for it's long term growth to be healthy. It tapped its lower trendline from the March lows and with all of the money being poured into this company, I can't really say if we will see a nice correction to the downside right now. Momentum is slowing and it was in overbought territory, but I have learned to not trust these signals when it comes to Amazon due to its extreme bullish sentiment and whale investors. I think earnings will show growth next week and this was just a short-term correction to go higher. The pandemic has actually propelled this company further and I think this will be a long-term hold for several decades.
That doesn't mean that the valuation is absolutely absurd right now. I personally would not go long until it pulls back to the 200 SMA. I wouldn't expect this stock or any to continue to rally higher forever, so I will be patient for the pullback and unload then.
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good Luck!
I think a pullback is necessary for it's long term growth to be healthy. It tapped its lower trendline from the March lows and with all of the money being poured into this company, I can't really say if we will see a nice correction to the downside right now. Momentum is slowing and it was in overbought territory, but I have learned to not trust these signals when it comes to Amazon due to its extreme bullish sentiment and whale investors. I think earnings will show growth next week and this was just a short-term correction to go higher. The pandemic has actually propelled this company further and I think this will be a long-term hold for several decades.
That doesn't mean that the valuation is absolutely absurd right now. I personally would not go long until it pulls back to the 200 SMA. I wouldn't expect this stock or any to continue to rally higher forever, so I will be patient for the pullback and unload then.
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good Luck!