Jingle Bulls: How Will The Santa Rally Impact Amazon And Apple?

Jingle Bulls: How Will The Santa Rally Impact Amazon And Apple?

2023-12-06 • Updated

As the year winds down and the festive spirit takes hold, the stock market often presents a curious yet anticipated phenomenon known as the Santa Rally. Characterized by a general uptick in stock prices from late December into the early days of January, this period is marked by a blend of investor optimism, holiday-induced spending, and strategic financial moves influenced by tax considerations. Within this whirlwind of festive trading, let’s look at how two titans of the tech world, Amazon and Apple, might fare during this unique season.

Amazon: Riding the Festive Wave

Amazon, a dominant force in global retail, strategically positions itself at the epicenter of the holiday shopping season. This period typically witnessed a significant escalation in consumer spending, which invariably led to a robust increase in Amazon's fourth-quarter revenues. This seasonal uptick is more than a mere festive phenomenon; it directly influences Amazon's stock performance, potentially leading to a notable upswing in its market valuation. But now is the time if you've been thinking about a potential entry point for a long time. 

AMAZONWeekly.png

The price is moving inside the ascending channel. Moreover, the stock broke above the 140.00 - 144.00 area. As long as Amazon trades above the lower channel’s border and the highlighted zone, traders should consider buying with the target of 165.00. 

Reflecting on Amazon's trajectory in 2023, it is evident that the company has exceeded market expectations, demonstrating remarkable growth and innovation. Nevertheless, as the Santa Rally approaches, certain challenges overshadow this optimism. Notably, AWS, previously a cornerstone of Amazon's growth, shows signs of deceleration. 

Therefore, if the price loses the 140.00 - 144.00 support range and the lower channels border, the stock will decline to 124.00.

Apple: A Festive Forecast

Then there's Apple, whose products often top holiday wish lists. Apple’s consistent revenue flow, powered significantly by its iPhone and Services segments, lays a strong foundation for its Santa Rally prospects. 

With its ever-growing high-margin service revenues and commitment to research and development, Apple has improved its business model and boosted equity returns to impressive heights. These factors and a robust pre-tax return on equity paint a picture of a company in robust financial health – a beacon for traders during the Santa Rally.

APPLEWeekly.png

Apple's stock price has been steadily rising inside the ascending channel. Currently, the price is approaching an all-time high of 198.00. A successful breakout of this resistance will open the way to 218.00, the 161.8 Fibonacci level. 

Summary

The Santa Rally presents a promising horizon for both Amazon and Apple, as their robust market presence and strategic strengths align well with the festive season's upbeat sentiment. This period offers traders a unique opportunity to capitalize on the optimistic trends and potential growth these tech giants bring.

TRY TRADING NOW

Similar

Stock Market Rally. How Far Can It Go?
Stock Market Rally. How Far Can It Go?

Global equities on Wall Street experienced a mixed session following the Thanksgiving holiday, heading for the most significant one-month rally since November 2020. MSCI's global shares index slightly eased but was still on track for an 8.5% monthly gain, fueled by growing investor confidence that U.S. interest rates...

Three Earnings Reports to Move Markets This Week
Three Earnings Reports to Move Markets This Week

Despite the positive outlook, the FBS analysts are cautious about buying the stock heading into earnings. The stock market has already experienced a significant run-up. Thus, a correction may happen this week!

Latest news

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera