Amazon, Breakout Stock Treasure Hunt

Companies / Company Chart Analysis Sep 15, 2009 - 01:04 AM GMT

Best Financial Markets Analysis Article Trading Approach: Identifying fundamentally stellar stocks poised technically to breakout for big profits.

Company Description

This week's breakout stock trade will involve Amazon.com (AMZN). Amazon.com, Incorporated. operates as an online retailer in North

America and internationally. It operates various retail Web sites, including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. The company serves its consumer customers through its retail Websites and focuses on selection, price, and convenience.

Fundamental Picture

The stock has terrific fundamentals with excellent sales growth and impressive return on equity. The trend of consumers to continue shopping online to save money has really benefited this company. In addition, the recent acquisition of Zappos and the success of the electronic reader Kindle will help turbo charge sales going forward.

Technical Outlook

The AMZN stock is exhibiting a strong uptrend based on the moving averages as well as an up sloping On Balance Volume(OBV)line whichfurther confirms the uptrend. The stock is also showing signs of starting to breakout from its most recent support area.

Trading Action Plan for the Week Entry:

Buy Amazon (AMZN) at 85.00 or better.

Profit Target Exit: 108.

Please note that we will use this price as an initial guide but we will gradually move up our trailing stop to capture as much of the breakout as possible while protecting our profits.

Stop-loss Exit: 77.50.

As the stock starts to breakout we will move the trailing stop up to protect any accrued profits.

Review of Open Positions: Trade Date Symbol Trade Trade Comments

No open positions.

Good Trading,

Jeff Neal - Editor

Jeff Neal has been actively and successfully trading the markets since 1996. He holds an MBA in Finance from the University of Indianapolis and a bachelor's degree in Computer Science from Indiana University. Jeff is a veteran trader consistently posting profits by strategically applying options to the stock and ETF markets. As an expert risk manager Jeff combines technical analysis, fundamental analysis and options to create an optimal risk to reward profile. Jeff has been a longtime trading mentor and a prolific writer that has had many articles published. He is an author having featured articles in Futures magazine and Stocks and Commodities magazine. Over the years Jeff has interviewed many of the top traders in the business discussing the secrets of their trading success. In addition to his trading and writing experience, he also was a radio show market correspondent discussing the best stocks and options for the week. Jeff is passionate about trading the markets and as a mentor he constantly emphasizes that concentrating on risk management has been the cornerstone of his trading success.

Regards,

If you have any questions or comments, email me at Jay@stockbarometer.com.

Regards,

By Jay DeVincentis

Stock Barometer Premier Membership Receive 5 Newsletters, including the Daily Stock Barometer, Stock Options Speculator, QQQQ/Rydex Trader, Market Chat & Explosive Stock Alert FOR ONE LOW PRICE.

Important Disclosure
Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.
Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.
In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.
For a complete understanding of the risks associated with trading, see our Risk Disclosure.

© 2009 Copyright Jay DeVincentis - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Comments

STEVEN
03 Oct 09, 23:26

Amazon Target REVISED

Amazon new Revised Target is $114. All enjoy good trading with Amazon.

Best of Luck

Steven

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.