Market News & Analysis


Top Story

Amazon continues to underperform with risk of further downside

Medium-term technical outlook on Amazon.com (AMZN)



click to enlarge charts

Key Levels (1 to 3 weeks)

Intermediate resistance: 1771.90

Pivot (key resistance): 1855.30

Supports: 1692.70 (trigger) & 1585.60/1547

Next resistance: 2035.80/2050.50

Directional Bias (1 to 3 weeks)

Bearish bias below 1855.30 key medium-term pivotal resistance and a break below 1692.70 may see a further potential down move to target the next support at 1585.60/1547.00 within a major range configuration in place since 24 Dec 2018 low

On the other hand, a clearance with a daily close above 1855.30 invalidates the bearish scenario for a push up to retest its major range resistance/all-time high at 2035.80/2050.50.

Key elements

  • Since 11 Jul 2019, the price action of AMZN has started to show signs of weakness as it evolves into a series of “lower highs” within a major range configuration in place since 24 Dec 2018 low.
  • Since its 03 June 2019 swing low area of 1692.70, AMZN has managed to hold at this level twice on 03 Oct and 25 Oct 2019 after its prior push down in price action. Interestingly, recent price action’s momentum has started to favour the bears as the daily RSI oscillator has staged a breakdown below a significant corresponding ascending support.
  • The next significant medium-term support rests t the 1585.60/1547.00 zone which is defined by the swing low area of 08 Feb/08 Mar 2019, lower boundary of the descending channel from 11 Jul 2019 high and a Fibonacci retracement/expansion cluster.
  • Relative strength analysis from the ration charts of AMZN against the market (S&P 500) and its sector (Consumer Discretionary) are still advocating underperformance of AMZN.

Charts are from eSignal 


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.