Amazon just had its worst week since 2018. Technically, the structure is damaged whichever way or form you look at at the chart. Double top, huge sell volume, way below all moving averages and closed under 2020/2021 support which makes me look at it all the way from March 2020 lows to see where this could be heading. A long-term TL support was broken in summer which turned to resistance and a resistance TL was formed in July which funnily 'may' provide relief support depending on where we open on Monday. The levels from 2700 to 2790 are potential accumulation zones and unless the company is fundamentally in trouble, which we shall only know about post earnings, I expect the stock to find its ground soon and rally into the remainder of 2022. The stock is extremely oversold and I personally believe Amazon is buyable even at current levels for long-term investors since it's nearly at its lowest price to earnings ratio in the last 5 years. Don't listen to all the perma-bears who think the stock is bloated and heading to 0, they been saying that for the last 20 years.
Amazon PE Ratio as of January 21: 55.81
PE Ratio Range for the past 5 Years:
Minimum: 55.56, AUG 19 2021
Maximum: 303.51, NOV 27 2017
Average: 126.34
Median: 92.71
Amazon PE Ratio as of January 21: 55.81
PE Ratio Range for the past 5 Years:
Minimum: 55.56, AUG 19 2021
Maximum: 303.51, NOV 27 2017
Average: 126.34
Median: 92.71
Comment:
If you followed my idea and bought at the lows of the accumulation range I highlighted, you've done well. Went up to 20% from the lows :)