Prime time for Amazon.com?
Amazon.com has retraced almost all of its pandemic gains. Is this an opportunity for buyers? Let’s consider some chart patterns.
First is the $101.79 level (split adjusted). It was a peak in July 2019 and a breakout area immediately before the coronavirus selloff in early 2020. AMZN probed that zone in late May and again in mid-June, each time managing to rebound above it. Has the old resistance been established as new support?
Second, prices formed a “W.” That’s potentially consistent with a double-bottom reversal pattern.
Third, the candlesticks with long tails on May 24 and June 30 were hammers – another potentially bullish reversal pattern.
Finally, you have some factors that don’t appear on the chart. Amazon Prime Day is July 12-13 and quarterly earnings are due around July 28. We’re also entering a new quarter and half. After seven months of pain, will investors start to revisit the e-commerce giant?
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
First is the $101.79 level (split adjusted). It was a peak in July 2019 and a breakout area immediately before the coronavirus selloff in early 2020. AMZN probed that zone in late May and again in mid-June, each time managing to rebound above it. Has the old resistance been established as new support?
Second, prices formed a “W.” That’s potentially consistent with a double-bottom reversal pattern.
Third, the candlesticks with long tails on May 24 and June 30 were hammers – another potentially bullish reversal pattern.
Finally, you have some factors that don’t appear on the chart. Amazon Prime Day is July 12-13 and quarterly earnings are due around July 28. We’re also entering a new quarter and half. After seven months of pain, will investors start to revisit the e-commerce giant?
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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