Amazon Shares Rebounding
Amazon shares are turning higher today with the company’s stock price once again attempting to break out above the bear channel from YTD highs. The move comes amidst news that Amazon has agreed to take a 2% stake in US food-delivery service Grubhub. As part of the deal, Amazon prime users in the US will get a free month with the service. The deal has been compared to a similar partnership in the UK between Amazon and Deliveroo.
Shares in Amazon have stabilised over recent months following a sharp drop over Q2, fuelled in part by the weaker-than-expected set of Q1 earnings the company released. Amazon is next due to report earnings at the end of July with shareholders hoping for a better set of results to help lift the company’s stock out of the doldrums.
Technical Views
Amazon
With the stock developing a firm base of support along the 100.55 level, Amazon shares are now threatening to break out above the top of the bear channel from YTD highs. The key level to focus on will be the 123.79 highs. If price can break above this level, this will confirm the shift in sentiment, putting focus on 137.81 next.
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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.