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Trends & Analysis
News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

Asset Watch

Buy Amazon ahead of Q4 earnings?

Thursday, January 25, 2024

Amazon is set to report fourth-quarter earnings on Feb. 1. But the e-commerce giant’s recent uptrend might be challenged as even a resilient print could lead to a muted response, despite whatever good news may already be priced in. U.S. Treasury yields have also ratcheted higher, increasing economic and valuation risks for S&P 500 companies.
However, Amazon confronts a robust technical backdrop, and the bulls are firmly in control until this changes.
Amazon recently broke out above its August and September 2023 highs, and after a pullback in early January, the stock successfully retested the level, meaning prior resistance is now support. If the momentum continues, there is little price resistance stopping Amazon from recouping its March 2022 highs, near $170.

To keep an eye on how things unfold, you should monitor Amazon’s 50-day moving average, which is near $149. The key level acted as support throughout most of the recent rally, effectively ending the corrections in April, July, August and September 2023, as well as January 2024. It also acted as resistance in October 2023, following the September breakdown.

 

Likewise, the 50-day MA will continue to rise the longer Amazon stays above it, and you can think of it as increasing support that may help the stock record higher lows and maintain its uptrend.

 

So, will Amazon dazzle the doubters in the days ahead, or could an earnings surprise undermine its technical strength?


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