Amazon Pulls Back, Prime Enters China; Uber's Self-Flying Vehicles - Eye On Tech - Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha

Amazon Pulls Back, Prime Enters China; Uber's Self-Flying Vehicles - Eye On Tech - Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha



This is an outstanding article about why Amazon is a buy after the 5% earnings drop.  I own Amazon myself, and I was certainly disappointed with the pullback, but stuff like this happens sometimes.  Cramer is also saying that AMZN is a buy now.



However, if I had been doing my due diligence, I would have temporarily sold Amazon before earnings, and I could buy it back now at a 5% discount.  The reason I am saying this is that technical charts often tell what is going to happen to a stock before big drops occur.   After the big drop in AMZN following earnings, I finally did some technical analysis which I should have been doing all along.  Amazon violated the 89 day simple moving average line several days before it crashed at earnings time.  I should have known to sell at that point, and I would have avoided the 5% loss.  The smart money or insiders had already been selling Amazon.  The MACD was pointing down at that time also.  So, Amazon's chart was telling us that something bad was about to happen.  I'll try to pay more attention in the future.



That is now water under the bridge.  I am holding onto Amazon because I don't want to sell after the drop, and the stock is a long-term buy.  Susquehanna has a $1,250 price target for AMZN.  So, I believe Amazon is a buy on all large drops like the one we just got.