Amazon Shares at Key Juncture
Following some initial downside action in response to Q4 earnings, Amazon shares have since been back in demand. Amazon reported a strong beat on earnings per share, which rose to $27.76, well above the $3.61 forecasts. Revenues, however, were slightly lower, which resulted in some short term selling, before price rebounded over recent weeks. However, with risk assets under pressure again over Russia-Ukraine uncertainty, tech stocks have come back under offer this week.
Looking ahead now, the focus will be on how price resolves in this current area. If geo-political uncertainties subside and risk sentiment recovers, this should put the focus back on a continuation higher. However, if the situation deteriorates, particularly if conflict arises, then Amazon, along with other tech stocks, is likely to fall sharply lower near term.
Technical Views
Amazon
Following an impressive 21% rebound off the recent lows, Amazon shares are now at a make-or-break point, retesting the broken bull channel and ledge of broken support, turned resistance, along the 3181.15 level. If this region holds as resistance, the market is potentially carving out a lower high against the November 2021 highs, suggesting a further leg lower in the medium term. Alternatively, if price can get back above the broken bull channel low, the focus will switch back to the topside and a continuation higher near term.
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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.