Amazon Bouncing Back – Buy on Dips (NASDAQ:AMZN) — This leading online retailer made a huge investment in technology that has had a negative impact on profit margins. But Amazon is still the leading Web seller and a well-managed company.

The recent drop from the top of a clearly established bull channel occurred when AMZN missed Q3 estimates, and the stock fell to its 200-day moving average. But that fall could have triggered a selling climax. Note the heavy buying that drove the stock back to just under its 50-day moving average.

This is a cornerstone investment for growth-oriented portfolios, and dips should be used as buying opportunities. Buy AMZN under $220 for a longer-term investment with a profit target of $260 or a trade to $240.

Trade of the Day – (NASDAQ:AMZN)
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