Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Asset Watch

Be very careful with Amazon

Tuesday, September 19, 2023

Bearish S&P 500 seasonality has officially arrived, and the sell-off on Sep. 15 seemed like investors’ attempt to front-run the action. As Big Tech makes up the largest component of the index, stocks like Amazon, Apple, Microsoft and Tesla often do the heavy lifting on the upside and the downside. If the correction continues, 2023’s winners may suffer the most as the drama unfolds.
Speaking of which, Amazon confronts a precarious technical backdrop, and while the e-commerce giant has been on an uptrend throughout the year, its mettle may be tested in the days ahead.
Amazon faces resistance from its August 2022 highs, and intraweek rallies have been sold when the level approaches. Even though the 10-week moving averages held as support throughout most of the 2023 rally, the price action on the right side of the chart shows how the gap continues to narrow.

Because of this, a breakout or breakdown could be on the horizon, and when the latter occurred in October 2022, the 10-week MA became resistance en route to new lows.

 

Another ominous indicator is Amazon’s RSI divergence, whose stock has recorded three new weekly closing highs, while its RSI (the black line at the bottom) has recorded lower highs. Consequently, momentum has weakened at a time when S&P 500 seasonality is bearish, and Amazon confronts a make-or-break technical challenge.

 

Is Amazon’s risk-reward proposition poor right now, or will a breakout to new highs silence the doubters?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.