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Amazon stock analysis: one final rally

By Nathan Batchelor

13:42, 7 August 2020

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Amazon stock analysis

Amazon’s share price is trading around the $3,200 level as traders and investors continue to buy any meaningful dips in the stock.

Amazon stock technical analysis shows that the online giant could be preparing for one final rally, before a strong downside correction commences.

Amazon US medium-term price trend

Amazon’s share price has moved back towards its all-time record high, following a short-lived dip towards the $3,000 support level. 

Amazon stock analysis on the daily time frame is showing that the stock is close to reaching its final medium-term upside objective.

Amazon stock technical analysis

According to the daily time frame, bulls could be preparing to attack towards a key long-term Fibonacci extension level.

The 2.618 Fibonacci extension of the December 2018 low to the February 2020 high is located around the $3,530 level.

Watch out for a potential blow-off top in Amazon’s share price if a rally towards the $3,530 level takes place.

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-8.960% 1D Chg, %
Long position overnight fee 0.0408%
Short position overnight fee -0.0658%
Overnight fee time 22:00 (UTC)
Spread 0.005


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-0.470% 1D Chg, %
Long position overnight fee -0.0166%
Short position overnight fee 0.0060%
Overnight fee time 22:00 (UTC)
Spread 3.3

Oil - Crude

80.34 Price
-1.310% 1D Chg, %
Long position overnight fee -0.0024%
Short position overnight fee -0.0116%
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17,103.25 Price
+0.830% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 66.00

Amazon short-term price trend

Amazon stock technical analysis shows that the short-term trend remains bullish while the price trades above the $3,000 support level. 

Lower time-frame analysis shows that Amazon’s share price is trapped inside a triangle pattern between the $3,220 and $3,000 levels.

Amazon stock technical analysis

According to the size of the bearish pattern, a bullish breakout could see Amazon rally towards the $3,440 area.

Traders should note that a bearish reversal may take place from the $3,440 level, as the stock has negative MACD price divergence that extends down towards the $2,600 support level.

Amazon US technical summary

Amazon stock technical analysis indicates that the online giant may be preparing to launch one final rally before a strong bearish correction takes place.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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