Amazon Shares Rallying on Stock Split News
Share in US online retailer Amazon are rebounding firmly this week. Tech stocks have been among the strongest beneficiaries of the rebound in equities recently. Amazon shares are now trading back above the mid-May highs, following a bounce off the 2073.07. Shares in the tech giant have been buoyed this week by news of the planned stock split for June 3rd. The 20-1 stock split is forecast to attract a fresh wave of buyers.
Bulls will be hoping to reverse the losses of the prior month, much of which were fuelled by a set of weaker-than-expected Q1 earnings. Both EPS and revenue fell below expectations. With Fed tightening expectations having driven the decline over the prior months, there is a hope now of a fuller recovery as traders begin pricing in a post-July Fed pause in tightening.
Technical Views
Amazon
The rebound off the 2042.93 lows in Amazon has seen the market trading back up to just shy of the 2483.08 level. With both MACD and RSI bullish here, the focus is on a break of this level and a move up to the 2720.13 level. This is a major resistance level for the stock and rejection at this level holds the potential to fuel a fresh leg lower. Alternatively, a break higher here will open the way for a much fuller recovery higher.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.