Amazon.com Knocks On Strength's Door, Says Dr. Joe Duarte
Duarte added: Amazon rolled over a few days ago, as it approached its 200-day moving average, near 66, but briefly crossed above the key line on March 4 before pulling back with the market at the close. But the stock has been outperforming the market since the November bottom. And if the market bounces high enough, it could provide enough fuel for the stock to move above 66 and start a more significant move higher.
At this point, Amazon owns the on-line shopping world. And its new upgraded Kindle reader is giving it a nice boost, as the $9.99 per book price is a bargain when you consider the fact that you don't have to drive anywhere or do anything except push a few buttons to download a new book and be on your way.
So the company is well positioned and has been showing relative strength, given the fact that other high tech stocks, such as Google, Apple, and RIMM have been struggling.
Yet, there are signs that things may get worse before they get better, although the action on March 4th was interesting to say the least. For one thing the fall in oil and commodity prices was arrested, while the U.S. dollar has been in rally mode.
Those are all signs of rising anxiety on the part of investors. And with few signs, if any, that anything that has been done so far is working, insecurity and uncertainty are on the rise. Still, anything is possible in a vastly oversold market such as the current one.
Duarte's conclusion: A sustained move above 66, if the market cooperates can take the stock to the 84-90 area, barring the usual external events and other negative surprises.
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Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).
Duarte's IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.
He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.
One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.
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