Amazon had an amazing run during 2020 as people switched to working from home relying more and more on delivery of goods. After reaching almost $3600 level, AMZN
stock pulled back slightly and has now formed a symmetrical triangle on the daily chart
. A break to the upside is a good opportunity to buy more, there is also a good resistance zone
for more confirmation. A break lower is possible, but it is hard to bet against AMZN
, when they are doing so well. Most banks and hedge funds state that AMZN
will reach its peak near $4000 mark. The rest of them state that it is already severely overpriced and the correction is coming.
Amazon also announced further funding for the expansion into the grocery industry, creating thousands of new jobs and competing with existing grocery companies. This bodes well for the company as they continue to expand into new markets.
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