We all know Amazon.com. Who hasn’t heard about Amazon? Unfortunately, this stock is not accessible to the typical trader because it’s a costly stock. For this reason, most traders will use all kind of options strategies, mostly selling options to take advantage of time decay and being paid a credit up front for taking the trade. That’s what the typical trader can aspire to if interested in trading Amazon.
Amazon continues to evolve as a company and stock and has become a critical supply channel for many consumers in an age where COVID-19 has influences the world economies so much. Amazon is in an excellent position to grow both its retail marketplace business and its AWS cloud services segment. Amazon’s Prime members enjoy what is arguably the best fulfillment infrastructure including Prime shipping and expanded digital content.
S&P500, SPY, Nasdaq and QQQ ETF are breaking all-time highs. Most IT stocks are following suit and breaking the all-time highs as well.
Following the stock split announcements from Tesla and Apple, Amazon stock is likely to be the next to do so. The split will not affect the technical analysis presented below though. But considering the current price of the Amazon stock, it would seem like at least a 10:1 stock split would be the right way to go.
Although investors know that stock splits don’t add any value on a purely economic basis, they can definitely provide a sort of a psychological lift.
Take a look at Amazon supply and demand technical analysis below. You will see Amazon’s monthly timeframe and a strong demand imbalance located around $2,500 per share. Will Amazon AMZN stock pull back so low? I don’t know, but after such a strong impulse we usually see a much more significant retracement and correction, generally to the origin of the move. It could take a few months for such a correction to happen and Amazon could keep on rallying a bit more for a couple of more months. The forecast provided below for Amazon stock is a long-term, short-term and intraday stock strategies will allow you to trade on the way down.
Should we buy shares of Amazon right now in September 2020? Definitely not. The stock is very costly and we are expecting a bigger correction.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances for Amazon stock.
Trading supply and demand imbalances are ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements for Amazon stock.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy an Amazon CFD (contracts for difference) if you are in a country where it’s allowed.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.