Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Amazon: rise to 6-month resistance?
Information is not investment advice
Amazon reports it Q4'2020 earnings on February 3, 00:30 MT time (after Tuesday’s midnight).
Since August 2020, the highest point for the Amazon stock price has been 3 545 and the lowest – 2 900. For six months, the price has been oscillating between these two extremes with diminishing magnitude to gradually convert into the last episode of sideways channel 3 100 – 3 345. Logically, as long as the fundamental outlook for Amazon is positive, the price is likely to bounce upwards and eventually cross the resistance levels of 3 345, 3 445, and 3 545 to take direction to new all-time highs. Otherwise, it may be going sideways for quite a considerable period. That’s why we need to see the Quarterly Earnings Report on February 3, 00:30 MT time (after Tuesday’s midnight).
While in the 3000-plus zone, Amazon’s stock price is slightly underperforming against the Wall Street 52-week expected mark of 3 800. In terms of EPS, the expectation is 7.26 for the Q4’2020. Observers are mostly positive about the possible results: the performance of Amazon’s key businesses (cloud computing and e-commerce) is expected to be promising. Also, Amazon Prime Day took place during Q4 and it will likely contribute to the financial result. Therefore, a rise back up to 3 545 seems to be a likely result of the Q4 performance announcements. In the mid-term, it may turn out to be an impulse required to push the stock price above the 6-month resistance.
Don't know how to trade stocks? Here are some simple steps.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.