Amazon stock: buy or sell

AMZN stock price: $3,453.96 -0.94% At close on Jun 21st, 2021

Updated on:
Jun 22nd, 2021

2

Amazon stock brief

  • Amazon closed on Monday at $3,453.96 after only moving a -0.94%.
  • JPMorgan Chase & Co. posted a buy rating for Amazon last Friday, with a forecast of $4,600.00
  • Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.

Should I buy Amazon stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $AMZN stock a buy?

Currently, Amazon stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't have upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Price is now at 2.90% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $3,554.00. The stop loss would be placed at $3,198.60

Buy setupBuy pointStop lossRisk
ATH buy setup$3,554.00$3,198.6010.00%

Should I sell Amazon stock?

"To sell or not to sell", if you are holding Amazon stock?. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a whimsy decision, and we must use our own trading style. When selling, as well as buying, detailed strategies are very simple to use and are only valid for selling shares in your porfolio, not for selling short Amazon stock

A guiding principle is that you should not keep an investment that shows a losses greater than those expected by the time of purchase. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Amazon stock?

In the current situation of Amazon there is not any eligible sell setup, so Amazon stock holders with operations in green can keep their positions

Amazon ratings

In the last month, 4 ratings were published for Amazon. General sentiment is bullish, with 4 out of 4 publishing optimistic outlooks

Amazon analysts' ratings - Last 30 days
Brokerage firmRating
May 25th, 2021
Bank of America Strong buy
May 26th, 2021
JPMorgan Chase & Co. Strong buy
Jun 16th, 2021
Jefferies Financial Group Strong buy
Jun 18th, 2021
JPMorgan Chase & Co. Buy

Amazon stock analysis

SMAs overview

AMZN stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $3,496.24 (1.22% above)
  • R2: $3,552.25 (2.85% above)
  • R3: $3,554.00 (2.90% above)
  • The current supports are:

  • S1: $3,434.00 (-0.58% below)
  • S2: $3,366.80 (-2.52% below)
  • S3: $3,350.65 (-2.99% below)
  • Bollinger bands

    Since the price surpassed the upper band last Friday, the price has been corrected downwards by 1.51%. The price is trading very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    AMZN stock Bollinger Bands chart

    Relative strength index

    After breaking out the line of 70 yesterday, dropped back below with a value of 66.25. This is a signal of weakness for the Amazon shares and it must tip us off of weakness in the price action

    AMZN stock RSI chart

    Amazon stock price history

    Amazon started trading priced at an adjusted price1 of $2.44 on May 1997. Since then, AMZN stock has risen by 141,455.74%, with an average of 5,893.99% per year. An investment of thousand dollars on the IPO would be valued $1,415,557.38 today.

    1: Adjusted price after possible price splits or reverse-splits

    AMZN stock price history chart

    Price target for Amazon stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.

    The following table shows the price target released by financial institutions in the last 30 days. Again, these targets are not direct recommendations for individual investors and must not be trusted blindly.

    Averaging all price targets exposed below, the predicted price for Amazon stock is $4,480.00. Amazon closed at $3,453.96 on Monday, that is a 22.90% than the predicted price.

    Amazon stock price predictions
    Brokerage firmPrice target
    May 25th, 2021
    Bank of America $4,360.00
    May 26th, 2021
    JPMorgan Chase & Co. Not available
    Jun 16th, 2021
    Jefferies Financial Group Not available
    Jun 18th, 2021
    JPMorgan Chase & Co. $4,600.00

    Earnings and financials

    Amazon.com, Inc. ($AMZN) published quarterly earnings of $15.79 per share last April, significantly surpassing the analysts consensus estimate of $9.54 per share. This quarterly report means an earnings surprise of 65.51%. Forecasted revenue for Q1 was $104.5 billion but Amazon slightly surpassed by 3.88%, reporting $108.5 billion.

    This compares to Earnings of $5.01 per share a year ago, so current EPS is an improvement of 215.17%. Looking at sales, figures skyrocketed a 43.82% compared to $754.5B same quarter 12 months ago.

    Amazon ($AMZN) is posting Q2 earnings report late next July. Estimated for this quarter is $12.27, compared to $15.79 that was reported for Q1.

    Amazon performance

    AMZN performance compared
    Company1m3m6m
    Amazon ($AMZN) 6.30% 10.50% 6.50%

    Please read:
    The comments written in this article are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the particular positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for learning motives only

    Amazon summary

    Monday, June 21st, 2021
    Open$3476.42
    Close$3453.96
    Day range$3434 - $3482
    Previous close$3486.9
    Session gain-0.94%
    Average true range$65.32
    50d mov avg$3,310.25
    100d mov avg$3,240.33
    200d mov avg$3,209.82
    Earnings dateJuly 29th, 2021

    Frequently asked questions

    What is Amazon stock symbol?

    Amazon.com, Inc. is a public company trading in the US stock market with the AMZN symbol

    Is Amazon stock a buy or sell?

    Amazon received 4 ratings in the last 30 days: 4 bullish, 0 bearish and 0 neutral.

    Will AMZN go up?

    Amazon had different price predictions issued by analysts in the last 4 weeks setting the target price to $4,480.00. That is a 29.71% than the current price ($3,453.96).

    Latest Amazon news