AMZN - Buy Limit Order - Entry at $98 - 100 shares

Amazon price is down -20.86% in the after hours post the company’s earnings report. For detailed earnings report summary please click here.

Despite the company beating the EPS estimates and having inline revenue (slight miss), its AWS (amazon web services came in below analyst estimates. While its advertising revenue came above analyst expectations.

The company is currently 56.5% undervalued. The technicals are showing oversold conditions and the the price seems to be bouncing off major horizontal support.

Since AMZN has hit our next buying level, we will add 100 shares at $98 per share to our position, increasing our portfolio allocation of AMZN from 2.85% to 3.25%.

We believe the price will be bullish in the short term at least, per the image above you can see where we anticipate potential resistance. This is a great opportunity for a short term trade or accumulation of a long term holding position.

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