Looking for clues as to where the market may be headed? What to watch on Amazon Stock this week
Amazon.com, Inc AMZN rose nearly 10% on Friday, in a bullish reaction to the pace of company earnings.
For the second quarter, Amazon reported earnings per share of 18 cents on revenue of $121.23 billion, beating the consensus EPS estimate of 13 cents on revenues of $119.09 billion.
Earnings likely surprised traders who were expecting lower results after Amazon reported mixed first-quarter earnings and lowered its second-quarter guidance.
Amazon and Apple, Inc AAPL, which also benefited from a bullish reaction to its quarterly report on Friday, may be a good indicator of the future direction of the S&P 500, due to weighted importance, the e-commerce and streaming giant is part of the index. Amazon holds the third-highest S&P 500 rating at 3.11%, behind Apple and Microsoft, with stakes of 7.08% and 5.9%, respectively.
Although Amazon looks poised for longer-term trading due to its strong uptrend, a pullback is likely on the horizon over the next few days due to the stock, as well as markets in general, entering overbought territory.
Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.
The Amazon chart: On Friday, Amazon printed a long-legged doji candlestick, which indicates that the temporary top could be reached, and the stock will retrace lower on Monday. If this happens, the lower gap that was left between $122.84 and $132.42 may close.
Bullish traders would prefer the gap to close because gaps fill about 90% of the time. Traders can then wait for Amazon to print a bullish reversal candlestick, such as another doji or hammer candlestick, at the lower range of the gap. Amazon is trading in a confirmed uptrend, with the most recent higher low printed on July 26 at $114.53 and the most recent confirmed higher high formed at the $125.50 level on July 22. nearly 18% off the more recent low, indicating that a retracement is needed. Amazon has upper resistance at $136.83 and $142.18 and lower support at $131 and $125.93.See also: 6 Amazon Analysts Respond to Q2 Earnings Report: 'Our Top '22 FANG Stock'
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Amazon.com, Inc AMZN rose nearly 10% on Friday, in a bullish reaction to the pace of company earnings.
For the second quarter, Amazon reported earnings per share of 18 cents on revenue of $121.23 billion, beating the consensus EPS estimate of 13 cents on revenues of $119.09 billion.
Earnings likely surprised traders who were expecting lower results after Amazon reported mixed first-quarter earnings and lowered its second-quarter guidance.
Amazon and Apple, Inc AAPL, which also benefited from a bullish reaction to its quarterly report on Friday, may be a good indicator of the future direction of the S&P 500, due to weighted importance, the e-commerce and streaming giant is part of the index. Amazon holds the third-highest S&P 500 rating at 3.11%, behind Apple and Microsoft, with stakes of 7.08% and 5.9%, respectively.
Although Amazon looks poised for longer-term trading due to its strong uptrend, a pullback is likely on the horizon over the next few days due to the stock, as well as markets in general, entering overbought territory.
Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.
The Amazon chart: On Friday, Amazon printed a long-legged doji candlestick, which indicates that the temporary top could be reached, and the stock will retrace lower on Monday. If this happens, the lower gap that was left between $122.84 and $132.42 may close.
Bullish traders would prefer the gap to close because gaps fill about 90% of the time. Traders can then wait for Amazon to print a bullish reversal candlestick, such as another doji or hammer candlestick, at the lower range of the gap. Amazon is trading in a confirmed uptrend, with the most recent higher low printed on July 26 at $114.53 and the most recent confirmed higher high formed at the $125.50 level on July 22. nearly 18% off the more recent low, indicating that a retracement is needed. Amazon has upper resistance at $136.83 and $142.18 and lower support at $131 and $125.93.See also: 6 Amazon Analysts Respond to Q2 Earnings Report: 'Our Top '22 FANG Stock'
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
What's Your Reaction?
