Even before the COVID-19 pandemic, Amazon (NASDAQ 🙂 was already the largest retailer in the world, as well as the largest cloud computing company in the world. The owner of this corporate behemoth, Jeff Bezos, is the richest person in the world at just 54; he's worth a staggering $ 124.7 billion dollars.
But now it seems that Amazon will dominate retail as thousands of other industry players fall prey to coronavirus shutdowns. Indeed, the Washington Post reports that over a quarter of a million stores were closed during the outbreak, of which 15,000 are expected to remain closed forever, increasing the number of failed stores by 60%.
But in general, Amazon's value continues to grow.
Before the broad, coronavirus-related market sales, the share price caused a Gold Cross when the 50 DMA crossed the 200 DMA. It is a positive sign, indicating that bullish movements are moving forward.
When this happens, it indicates that a wide range of prices are being amplified and as such is a technical trigger highlighting financial portals. This ensures that traders and investors know it is happening and what it means, making it a powerful psychological engine.
In this case, Amazon's stock managed to rebound above both the 200 and 50 DMAs, aiming for the February 19 peak of $ 2,170.22, which is only 6.2 % above the price.
Yesterday, the stock returned incredibly quickly to spitting distance from their pre-pandemic sale, the February 19 record, $ 2,186, closing just 0.06% below an increase of more than 6% during the session – making the wider market was sold out. If that's not a sign of confidence in the stock, we don't know what it is.
Of course, there is no guarantee that the stock will not decrease if panic sets in and the price finds resistance after yesterday's failed attempt to set a new closing record. But as for investments, this one seems like a winner.
Trading Strategies
Conservative traders will wait for another spike and the profitable correction supported by continued demand.
Moderate traders would likely wait for a new peak and for the withdrawal, for better access, not necessarily as evidence of trend.
Aggressive traders can enter a new peak.
Trade Example
Entry: $ 2,200
Stop-Loss: $ 2,180
Risk: $ 20
Target: $ 2,260
Reward: $ 60
Risk: reward ratio: 1: 3
