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Amazon

Market Opportunities - 22/07/2021

22 July, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Amazon weekly uptrend opportunity based On 1.00 Lot Calculation:

  • Amazon is the king of e-commerce. It continues to benefit from ongoing lockdowns and a fundamental shift in how consumers shop. It also runs one of the world’s most popular cloud computing services called AWS.
  • Amazon dominates the cloud computing market with a 40.8% share in 2020. Cloud computing is expected to grow from $371.4 billion in 2020 to $832.1 billion in 2025 which is a compounded annual growth rate of 17.5%.
  • Event: 2nd Quarter Earnings: Amazon is scheduled to post its 2nd Quarter earnings on July 29th. It is expected to earn $15.61 per share and see revenue over $115 billion. It has beat its adjusted earnings estimate 6 of the last 8 quarters and beat its revenue estimate 8 of the last 8 quarters. We believe Amazon has a good chance of exceeding estimates again.
  • Amazon has a new CEO named Andy Jassy who has taken over since its founder Jeff Bezos stepped down. We believe that the CEO will want to make his mark on the company and speculate that one of his first corporate decisions might be to split the stock, which has not split since 1999. Share prices tend to react positively to splits.
  • Technical Opportunity: Amazon has underperformed the major indices Year-to-Date. It is up 9.71% while the USA500 has risen 16.06% and the USA100 has climbed 14.63%. As one of the stronger companies in those indices it could be expected for Amazon to at least equal or exceed their performance.
  • Analyst coverage: Bloomberg lists 55 analysts from major financial institutions that cover Amazon. 54 of them have Buy ratings on the stock and one has a Hold rating. The consensus target price is $4260.54.

AMAZON, July 22, 2021

Current Price: 3,580.00

Amazon

Weekly

Trend direction

UP

Resistance 3

4,200.00

Resistance 2

4,000.00

Resistance 1

3,800.00

Support 1

3,400.00

Support 2

3,200.00

Support 3

3,000.00

Example of calculation base on weekly trend direction for 1.00 Lot*

Amazon

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

62,000.00

42,000.00

22,000.00

-18,000.00

-38,000.00

-58,000.00

Profit or loss in €**

52,569.99

35,611.93

18,653.87

-15,262.26

-32,220.32

-49,178.38

Profit or loss in £**

45,144.75

30,581.93

16,019.11

-13,106.54

-27,669.37

-42,232.19

Profit or loss in C$**

77,912.92

52,779.72

27,646.52

-22,619.88

-47,753.08

-72,886.28

* 1.00 lot is equivalent of 100 units

** Calculations for exchange rate used as of 10:14 (GMT+1) 22/07/2021

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

*** You may wish to consider closing your position in profit, even if it is lower than suggested one

**** Trailing stop technique can protect the profit – Ask your Client Manager for more details

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