Strong gains in Amazon's stock supported E-mini S&P 500 futures, which were hit by Fitch's US downgrade and Apple's disappointing report.
- Amazon revenue for the quarter: USD 134.4 billion, +11% year-on-year;
- profit: USD 6.8 billion for the quarter (-USD 2 billion last quarter);
- the company continued to reduce the cost of maintaining supply chains;
- growth of Amazon Web Services has stabilized as customers move from cost optimization to deployment of new workloads;
- forecasts of sales growth encouraged investors.
The AMZN stock chart shows that a successful report pushed the price to a year high, trading in the morning will start around USD 129 per share. Thus:
- a wide gap is formed on the chart, which can serve as support;
- the price will rise from the lower border of the channel to the upper, where it may meet resistance;
- RSI will bounce off the 50 line;
- the market may be supported by the area around USD 133.5 per share, where the median line of the channel and the maximum from July 31 pass.
Despite the sharp rise, AMZN's share price is still far from meeting the average target values, which, according to Tipranks, are in the region of USD 157.
To benefit from the rise and fall of the AMZN share price, consider enlisting the services of a trusted broker like FXOpen.
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