AMZN, Two-Fold Formations, MASSIVE BREAKOUT on Earnings!Hello There!
Welcome to my new Stock Market Price Analysis about the AMAZON/ AMZN Stock Price. In my analysis I am analyizing the stock price of AMAZON/ AMZN on a 2-day timeframe perspective. The markets are showing initial recoveries from the massive shocks that hit the economy in the last year with inflation rising to new heights. As the inflation calms down and recession dangers seem to decrease a big questionmark confronts investors on where they should allocate their funds to profit from a possible upswing within the market. Although, this holds true for institutional and retail investors, a bigger chunk of larger price-swings is done by smart money institutional flows. Therefore an appropriate objection is also done when considering where smart money is allocating there funds. In this current situation it has to be explicitly said that not every stock in this market has the ability to rally and to recover from a recession scenario. Therefore, it is utmostly important that sophisticated investors pick the stocks that have a real potential in the market and that should also keep providing strong returns if inflation, recession, stagnation, and a extensive demand gap should rise again.
In the past earnings report the AMAZON/ AMZN stock has surprised the markets with a huge increase in earnings by 83.66%. This could be a sign that AMAZON/ AMZN has the potential to complete 2023 with a positive earnings close compared to the really bad year of 2022 where earnings actually closed negatively of -153.34% which also showed up in the real price-action of the actual price of the stock. Reversely, this means that when the company holds on to positive earnings and increase them to close 2023 this will provide a strong fundamental boost that has the potential to convert into actual price-action that can be inclined with the technicals for the stock price-action. Especially, considering how well the stock has done within the corona crisis with retail business moving to new heights compared to other businesses that just hit rock bottom and mass-bancruptcies unfolding all over the place this shows how these dynamics can give the stock a positive fundamental base in the present dynamic from where growth is possible if not other dynamics with considerations of inflation, recession, stagnation, and a extensive demand gap should change in the next times.
Considering the technical perspective which is also playing a massive role for the stock there are several really interesting developments here. Firstly, recently with the earnings surprise the stock jumped massively and printed a great green candle pumping over 10%. Furthermore, the stock is forming two main formations here which is firstly the massive broadening-wedge formation that has been almost completed for now and the inverse head-and-shoulder formation in which the stock price-action is now forming the right shoulder of the whole formation moving simultaneously with the broadening-wedge confirmation. The fact that this bounce within the main support cluser marked in orange in my chart supported by the 100-EMA in blue, the 600-EMA in red, the ascending trend-line of the huge channel and the upper-boundary of the broadening-wedge increase the likelihood of a appropriate bounce in this area by almost 100%. With this first confirmation, from the technical perspective this will open the doors for the stock to rally massively and finalize also the second confirmation which will happen with the stock breaking out above the blue neckline of the inverse head-shoulder formation.
Thank you everybody for watching. Support for my idea is appreciated and then let´s move on forward together.
VP
