These Reports Will Determine The Fate of The US Tech Sector
This week AMD, Amazon, and Apple will release their earnings reports. These tech giants will determine the future of the US stock market!
Amazon: ready to shoot
2020-12-04 • Updated
Technically, Amazon offers a very peculiar layout. The lower highs that have been in the place since the middle of August make a curved downtrend that converges with a similarly looking uptrend exactly where the stock trades now. 3 200 is where the two trends collide as you can see on the chart. Even if you discard the visual concept of these trends, it is obvious that this stock is now in a strategic consolidation: shooting up and down from 3 200, it shows spikes of fluctuation less and less as time goes by. Therefore, the logical question is, sooner or later, then it “completely calms down”, what will happen? Will it rise or drop?
Fundamentally, one possibility seems more probable than another one: it will rise. Why? First, it’s Amazon. Meaning, it’s a delivery service with many side activities the proved to be immune to the trouble of department store businesses that suffered most from the virus and restrictions against it. Second, we are approaching the holiday season. People will start buying gifts soon. Virus or not, there will be purchases, the Amazon’s sales should enjoy this time. Third, because of this holiday season. Amazon is hiring more people – that’s another reassurance of its mid-term future that reflects the picking up demand.
For this reason, common sense suggests that the resistance of 3 340 should be a more likely target for the stock price than the support of 3030 in the mid-term. But you can never know with this virus, let’s watch it…
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