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 after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Asset Watch

Where could Amazon bounce?

Tuesday July 23, 2024

Big Tech took another beating last week, as profit-taking hammered outperformers like Amazon. However, with the e-commerce giant reporting earnings on Aug. 1, Needham analyst Laura Martin believes services and live-streaming are the next fundamental catalysts to push the stock higher. She wrote on Jul. 17 that Twitch is a “hidden gem,” adding “We believe that [Amazon] should be valued as a services company rather than a products company.”
“Services revenue and margins (including advertising, subscriptions and cloud) are far larger and growing faster than [Amazon’s] core e-commerce business. Services growth implies valuation multiple expansion owing to its high margins, we believe.”
Though she also increased her price target from $205 to $210, as the earnings report approaches, you should focus on a few key technical levels to determine the short-term risk-reward.
Amazon closed below its 20-week moving average (the blue line) last week. Yet, the same thing occurred near the end of May and the breakdown was invalidated. Consequently, this week is critical to determine if the recent drop has run its course.

If not, the area near $175 (the horizontal white line) marks the range of highs and lows that have materialised since the end of January. Therefore, it could provide a nice support zone if the drawdown continues.

Finally, Amazon’s 40-week MA (the yellow line) stands near $168. It marked the bottom in late 2023 and was a major resistance level during the 2022 bear market. As a result, it’s an ally for the bulls this time around.

So, can Amazon shake off last week’s rout, or should you wait until after the Aug. 1 earnings report to make your move?


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.