Followers | 679 |
Posts | 140796 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Monday, August 01, 2022 11:02:34 AM
By: Investing.com | August 1, 2022
Amazon.com (NASDAQ:AMZN) surged 10.3% on Friday after posting second quarter earnings. The jump extended monthly gains to a whopping 27%, rendering it the best performing month since October 2009. The powerful rally rebounded from a three-month losing streak when the company lost 34.8% of its value on concerns that dramatically rising inflation and a shrinking economy would severely reduce the retailer's sales. However, the company's results beat estimates.
Bloomberg Intelligence analysts argue that Amazon is sufficiently robust to withstand rising prices. Prime members have substantially increased spending since the start of the spending. Unlike Walmart (NYSE:WMT), which caters to cost-conscious customers, Amazon also has income streams from affluent customers. Also, Amazon's (third-party) marketplace provided another income stream, as it provides a broader selection and price diversity, a spectrum traditional retailers lack.
From a technical standpoint, Amazon's July performance being its best since it bottomed with the rest of the market after the 2008 crash appears to contradict my overall market position. My readers know that I have been bearish (here is my latest take on markets). I appreciate the apparent contradiction in being bearish on markets and bullish on Amazon, an economic bellwether.
However, I am bullish on Amazon only in the short to medium term. Second, as I've demonstrated above, Amazon has turned into a complex business that can navigate via different economic climates. Finally, the interest cycle is the most significant difference between 2009 and now. In 2009, QE started. QE ended, and the Fed ushered into the sharpest tightening in decades.
And at the final analysis, as an individual trade goes, I am relying on the forces of supply and demand.
Amazon Daily Chart
Amazon's shares seem to have bottomed with a powerful rising gap. However, there is apparent resistance. First, the Jan., Mar., and Apr. low of a range that is a mirror image of the bottom. Second, the price didn't fill the Apr 29 breakaway gap. Finally, trading jumped up and down but closed unchanged, forming a high wave candle. This pattern doesn't just show confusion but fear. Traders run here and there but can't pick a direction. Still, the price often returns after a breakout, at the end of a short squeeze. If the price finds support, it evidences ongoing demand, bulls rather than bears.
Trading Strategies
Conservative traders should wait for the price to complete a full return move and demonstrate pattern integrity before risking a long position.
Moderate traders would wait for a pullback for a better entry if not for trend confirmation.
Aggressive traders can enter a contrarian trade, counting on the evidence of resistance to propel a return move before joining the rest of the market in an extended position. Ideally, you'd operate according to a plan that incorporates your timing, budget, and temperament.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent AMZN News
- Amazon Bedrock Launches New Capabilities as Tens of Thousands of Customers Choose It as the Foundation to Build and Scale Secure Generative AI Applications • Business Wire • 04/23/2024 01:40:00 PM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- Amazon Introduces Low-Cost Grocery Delivery Subscription for Prime Members and Customers Using EBT • Business Wire • 04/23/2024 10:00:00 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Amazon.com to Webcast First Quarter 2024 Financial Results Conference Call • Business Wire • 04/16/2024 08:01:00 PM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Holland America Line Teams Up with Audible to Offer a Virtual Book Club Allowing Guests to Stay Connected to the Brand On Board and Ashore • PR Newswire (Canada) • 04/04/2024 01:00:00 PM
- Holland America Line Teams Up with Audible to Offer a Virtual Book Club Allowing Guests to Stay Connected to the Brand On Board and Ashore • PR Newswire (US) • 04/04/2024 01:00:00 PM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- SWIFT Innovates in CBDC Solutions, SEC Imposes Billion-Dollar Fine on Ripple Labs, Tether Ventures into AI, and Latest News • IH Market News • 03/26/2024 07:24:10 PM
- S&P Global Commodity Insights and Amazon Web Services Empower Digital Transformation in Upstream Oil & Gas Industry • PR Newswire (US) • 03/26/2024 01:00:00 PM
- Super Micro Computer and Seagate Shares Surge on Analyst Optimism in Pre-Market Trading, and Latest News • IH Market News • 03/26/2024 11:20:49 AM
- JPMorgan boosts dividends, Chipotle unveils 50:1 stock split, and Latest News • IH Market News • 03/20/2024 11:15:48 AM
- AWS and NVIDIA Extend Collaboration to Advance Generative AI Innovation • Business Wire • 03/18/2024 09:05:00 PM
- Adobe Stock Drops Following Below-Estimate Projections, Cardlytics Surges with Unexpected Profit, and More News • IH Market News • 03/15/2024 11:30:55 AM
- Introducing the Next-Generation Blink Mini 2 — A New Compact Plug-In Camera That Works Both Indoors and Outdoors • Business Wire • 03/14/2024 02:26:00 PM
- Fisker’s Shares Take a Hit Amid Speculation of Bankruptcy, Altria Divests from AB InBev to Fund Stock Repurchase Initiative • IH Market News • 03/14/2024 11:39:32 AM
- Crypto: Toncoin Surges Following Telegram’s IPO Plans, Coinbase Secures $1 Billion via Convertible Bonds, and More News • IH Market News • 03/13/2024 03:28:56 PM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM