Amazon has had a nice run from 2014 to 2018 where we witnessed a 645% price rice from
$274 to $2,050. Price eventually became exhausted and began to form a long-term period of
consolidation where the buyers and sellers have been trying to establish dominance over each other.
The resistance level of the consolidation zone also coincides with the major $2,000 round number
which is a strong psychological level of support/resistance.
In early February the buyers were able to give price a strong upwards push which saw price briefly escape
from the consolidation zone. Soon after, price reentered consolidation as the sellers tried to regain control.
The current pandemic has forced millions of people to remain indoors and online businesses are seeing growth
in their shares and Amazon is clearly one of them.
On the 14th of April, the buyers gave price another push to the upside which has seen price go on to
create new all-time highs and so far price has remained out of consolidation.
If we start to see price pulling back, we have the $2,000 round number as a major support level below price.
If price can remain above consolidation and start a long-term uptrend then we may see a repeat of
the 645% trend we saw in the past.
Amazon should definitely be on your watchlist but bear in mind this is an expensive stock that may not be
suitable for all account sizes without increasing your risk. It may be worth just looking at cheaper stocks.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
$274 to $2,050. Price eventually became exhausted and began to form a long-term period of
consolidation where the buyers and sellers have been trying to establish dominance over each other.
The resistance level of the consolidation zone also coincides with the major $2,000 round number
which is a strong psychological level of support/resistance.
In early February the buyers were able to give price a strong upwards push which saw price briefly escape
from the consolidation zone. Soon after, price reentered consolidation as the sellers tried to regain control.
The current pandemic has forced millions of people to remain indoors and online businesses are seeing growth
in their shares and Amazon is clearly one of them.
On the 14th of April, the buyers gave price another push to the upside which has seen price go on to
create new all-time highs and so far price has remained out of consolidation.
If we start to see price pulling back, we have the $2,000 round number as a major support level below price.
If price can remain above consolidation and start a long-term uptrend then we may see a repeat of
the 645% trend we saw in the past.
Amazon should definitely be on your watchlist but bear in mind this is an expensive stock that may not be
suitable for all account sizes without increasing your risk. It may be worth just looking at cheaper stocks.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
