Technical Watch: CCI Indicator Reading in Focus for Amazon.com Inc (AMZN) as it moves to Hold

Tracking the latest technical readings, we can see that shares of Amazon.com Inc (AMZN) have a current 60-day commodity channel index signal of Hold. The CCI indicator is generally used to identify overbought and oversold levels. The CCI signal direction is currently pointing to a Bearish. Turning the focus to the medium-term indicator on company shares, we note that the reading from the 40-day commodity channel index is presently Hold. The current direction of the signal is pointing to a Bearish.

Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.

Tracking some alternate information, we have noted that the company’s current book value is 80.02. The book value is the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Shifting gears, the company has a current interest coverage value of 5.49. This value measures a company’s ability to honor its debt payments. When the value is below 1, the company may not be generating enough cash from its operations to meet its interest obligations. Tracking current trading session activity on shares of (company), we can see that the stock price recently hit 1617.21. Since the start of the session, the stock has managed to touch a high of 1648.2 and drop to a low of 1595.15.

Investors are often closely following recent stock price support and resistance levels. The support is a level where a stock may see a bounce after it has dropped. If the stock price can break through the first support level, the attention may move to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it hits a certain level of resistance. After a recent look, the stock’s first resistance level is 1645.22. On the other side, investors are watching the first support level of 1592.17. Investors may also want to take a longer-term look at company shares. According to the most recent information, the stock has a 52-week high of 2050.5 and a 52-week low of 1265.93. Staying on top of longer-term price action may help provide investors with a wider scope of reference when examining a stock.

Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.

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