Amazon - Pop & Drop?
Amazon had a gap up after the last earnings report which honestly took me by surprise since they had very little growth despite their inflated PE value. Overall I think that the general market rally and the stock split may have contributed more than anything. I guess investors were simply thankful that Amazons numbers weren't declining.
Anyway we saw the gap up but that stalled at the former support level - now marking a resistance level. This combined with the overhead resistance and the bounce down from the 200 day moving average says to me that the gap up is over and there is a good chance it will come right back down in the coming weeks to months
Personally I had some Jan 2023 puts at 115 and was happy to add more at 130 & 140. I think we should be coming down to the mid 90s once the bear market truly bottoms.
Something I keep in the back of my mind is that Amazon is not really a true monopoly, they have a huge head start but nothing is stopping other companies from improving their delivery services and online ordering. Their Amazon web services is starting to garner competition and their streaming service is obviously paralleled by many different providers. Amazon had exponential growth in the past because the competition was not as focused or well funded in their domain, this is no longer the case. I expect some speculative investors to spread out their investments or pull back from the Bezos venture.
Anyway we saw the gap up but that stalled at the former support level - now marking a resistance level. This combined with the overhead resistance and the bounce down from the 200 day moving average says to me that the gap up is over and there is a good chance it will come right back down in the coming weeks to months
Personally I had some Jan 2023 puts at 115 and was happy to add more at 130 & 140. I think we should be coming down to the mid 90s once the bear market truly bottoms.
Something I keep in the back of my mind is that Amazon is not really a true monopoly, they have a huge head start but nothing is stopping other companies from improving their delivery services and online ordering. Their Amazon web services is starting to garner competition and their streaming service is obviously paralleled by many different providers. Amazon had exponential growth in the past because the competition was not as focused or well funded in their domain, this is no longer the case. I expect some speculative investors to spread out their investments or pull back from the Bezos venture.
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