Amazon share price consolidates in a pennant formation for almost a month now. It rallied to $3,200 before the pennant, and the measured move points to more strength.
Amazon is one of the companies that benefited the most from the economic lockdown. Having strong international exposure and delivering goods in all corners of the world, Amazon is the tech company that drove the Nasdaq100 index to new all-time highs during the economic recession.
As people spent more time connected to the Internet, settled online businesses reaped most benefits. The U.S. fiscal stimulus that delivered $600 weekly checks made sure people had money to spend. Amazon share price’s performance during the crisis is only normal, even though it defies any logic when it comes to valuation.
However, as investors do not know how long the pandemic will hold, it is difficult to forecast the future impact on Amazon’s business. Until we see a meaningful change in the underlying conditions, Amazon share price is poised to move even higher.
Goldman Raises S&P500 Year End’s Target
One of the largest investment houses on Wall Street, Goldman Sachs lifted the S&P500 year’s end target to 3,600. Such upgrades are likely to trigger a snowball effect, with optimism likely to spill over on other markets too.
Berkshire Reveals Position in Barrick Gold
Last week ended with Berkshire Hathaway revealing a strong position in Barrick Gold. Finally, Buffett is buying something and uses the company’s enormous cash pile. It comes, too, as a sign of optimism regarding the economic recovery.
Amazon Share Price Technical Setup
The upbeat tone seen in the U.S. stock market is likely to generate further enthusiasm. Amazon’s consolidation might end sooner rather than later, with the pennant’s measured move pointing to $3,800. Using a stop-loss order at $3,000 and an entry at $3,300 is enough for a 1:2 risk-reward ratio to make the most of the pennant formation.
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Amazon Share Price Forecast
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