Chapter X: Technical Analysis discovers the range of moods of investors toward AMZN. |
| Prev. Co. | Next Co. | |
|
| ||
| One commonly consulted gauge of the mood of the market for Amazon is the Negative Volume Index. The modern version of the indicator has received several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. The plot is orange below the unity line (neutral implication) and green above (bullish). |
|
How to read the Calibrated NVI for Amazon: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
| Prev. Co. | Next Co. | |
| ||
| The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for Amazon covers the few years before the start of the chart at the top of the page. |
| Prev. Co. | Next Co. | |
| ||
| The historical Closing Altitude is traced by the blue line above. For the trading week ending 3/5/2010, the weekly average closing altitude was 66.16 percent. 50 percent closing altitude is marked as the midline. If the closing prices happened to be exactly halfway between the high and low, they would be plotted on this midline. Values above the midline indicate that day traders have positive feelings toward AMZN while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The latest data indicates a downward trend, with a slope of -11.54. Amazon stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| The Volume Portion is low for the latest data at 0.84. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Amazon share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.Short term, the slope of this indicator is negative at -0.03. |
Influence of Investor Sentiment on AMZN stock prices. Also, roadmap and Summary of most effective indicators: |
| Thursday, March 18, 2010: We have news on MicroSoft, ticker symbol MSFT. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Mylan Inc. and Patterson Companies, Inc.. From the News Archive: (3/17/2010 ) Favorable events happened at LoJack Corp and ACM Income Fund. Meanwhile, bad news came from LSI Corporation and Sempra Energy. |