TradeStation

Amazon.com Has Pulled Back Before Earnings

Long
NASDAQ:AMZN   Amazon.com, Inc
Amazon.com came to life in the past month. Now it’s pulled back, giving an opportunity to potential buyers.

The main pattern on this chart is the breakout from the basing pattern that formed between September and June. This move to new highs suggested bulls were returning to the e-commerce giant after three quarters of consolidation.

Second, notice how prices have retested the previous highs around $3,500 from late April and late June. Depending on volatility in the broader market, a deeper probe of the late June lows around $3,400 may occur. That would also be near the 50-day simple moving average ( SMA ).

Some non-technical events may also favor AMZN . Earnings are due on July 29. (It will be CEO Andy Jassy’s first quarter in the place of Jeff Bezos.) There’s also been a strong shift in the market recently toward growth stocks and the Nasdaq-100. Additionally, a potential return of coronavirus in the delta variant could rekindle some of last year’s stay-at-home sentiment.

TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.

Comments

Confused on this one. Is it a SHORT play or LONG play?
Reply