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Amazon Pops on USD Drop
Shares in Amazon are trading firmly higher ahead of the US open today. The tech stock has been on a solid bull run this year and despite some choppiness over the end of Q1, the stock has rebounded firmly and is now trading around 50% up on the year. This week, a shift in market expectations ahead of the upcoming June FOMC has been a major supporting factor for Amazon and the broader equities space.
With the Fed now widely expected to hold rates unchanged this month, stocks have been given a green light near term. Comments from Fed’s Harker and Jefferson this week has swayed market opinion back in favour of a pause and with the US Dollar falling sharply tech stocks in particular look set to remain underpinned here.
Amazon Settles Privacy Case
The company appears to have shrug off news of a recent settlement over claims that Alexa and Ring Doorbells were used to spy on private individuals. The case, brought by the FTC saw Amazon denying any wrongdoing but agreeing to settle for $25 million with the regulator.
Technical Views
Amazon
The rally in Amazon shares has seen the market breaking out above the long term bear trend line and, more recently, above the top of the bull channel which has framed the move off YTD lows. Price is now testing the 123.79 level. This is a key resistance area and a break here will be firmly bullish, putting the focus on a bigger move up towards the 137.81 level next. To the downside, 112.63 remains the key support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.