When is the time to buy Amazon (NASDAQ:AMZN) stock?
Using Ichimoku cloud analysis for Amazon's price movement, we will discover if now is the time to buy. The price just broke above the daily Ichimoku cloud.
About Amazon Fundamentals
Amazon is among the world's highest-grossing online retailers.
It had $233 billion in net sales and roughly $311 billion in estimated physical/digital gross merchandise volume in 2018.
Amazon also continues to find ways to evolve its business model. Its operational efficiency, network effect, and a brand intangible asset built on customer service provide its marketplaces with sustainable competitive advantages.
Few, if any, traditional retailers can match Amazon. The combination of competitive pricing, unparalleled logistics capabilities and speed, and high-level customer service makes Amazon an increasingly vital distribution channel for consumer brands.
Now more retailers looking to expand online. However, Amazon is on track to maintain its consumer proposition through Prime expedited shipping, an expanding digital content library, and new partnerships from its Whole Foods acquisition.
Amazon is also spreading its arms in artificial intelligence (AI) and machine learning as well as other valuable industries in the future which make it an interesting choice to hold long term. However, during a recession, the Amazon stock price could take a hit.
Ichimoku Analysis
Amazon stock price broke above the daily Ichimoku cloud last week. Ichimoku Kinko Hyo strategy suggests we could see a temporary pullback towards the upper band of the cloud before further gains, which could provide an interesting buying opportunity.
During a recession, Amazon's stock price forecast could be dimmer. It could go as low as key Fibonacci retracement levels at 1,689 and 1,605, or perhaps even lower. However, over a longer period, in my opinion, Amazon is worth keeping.