Amazon Stock Forecast: Continue Buying this Top Tech Stock (AMZN)

Amazon Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First has had success predicting the movement of Amazon’s stock price in the past. In this one-year forecast from October 26, Amazon had a strong bullish signal strength of 189 and a predictability indicator of 0.41. In accordance with the algorithm’s prediction, the stock price increased 112% during that time.

Amazon Stock Forecast

(Figure 1: AMZN Stock Forecast 26th Oct ’14)

More recently, I Know First published a bullish article on Amazon on Seeking Alpha. Having explained how I Know First’s algorithm works and providing an example of its success in the past, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. A one month forecast for AMZN is featured below.

Amazon Stock Forecast

(Figure 2: AMZN forecast 23rd October ’15)

The above forecast is one of our most recent from the 23rd October. With a moderate positive signal and a moderate predictability, the algorithmic forecast is slightly more cautious then the fundamental forecast – but nevertheless still bullish. With inroads into creating their own branded clothing lines and making steps to dominate the impending Internet of Things market, Amazon potential may have no boundaries.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Amazon. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.