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May 18, 2023
A quick look at yesterday: pronounced bullish sentiment in the market helped the tech and retail multifaceted giant to make a notable 1.85% gain yesterday, rising $2.1 and ultimately closing at $115.5.
United States Initial Jobless Claims data will be released today at 12:30 UTC, with an expected improvement to 254,000 (previous figure was 264,000).
Amazon's uptick comes amid good United States macroeconomic data released during the day — highly important Crude Oil Inventories data from United States beat analyst expectations of -920,000 with a reading of 5 million.
Meanwhile, United States Building Permits (Apr) released yesterday at 12:30 UTC with a figure of 1.42 million, while the previous figure was 1.44 million. United States 20-Year Bond Auction released yesterday at 17:00 UTC with a figure of 3.954, while the previous figure was 3.92.
Concerning technical analysis and more specifically, trend indicators, investors are seeking long positions as Amazon price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $115.94, thereby suggesting that Amazon is becoming overvalued. Visual analysis of Amazon's chart shows that Amazon could be slowing down soon; it is getting close to the resistance line and is now at $116.15, only 65 cents away. Crossing the resistance line could, however, suggest that further gains are ahead.
Notwithstanding Amazon's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
A look at other consumer discretionary stocks also showed bullish price action as Lowe's traded at $207.2 after closing yesterday's trading day at $199.22 (up 4%). Home Depot traded at $292.39 after closing yesterday's trading day at $282.33 (up 3.56%). Walt Disney gained 1.97%, as it traded at $92.77.
Yesterday's gains have given market bulls further impetus to expect strong macro data going forward, such as United States Initial Jobless Claims is projected to outperform its last figure with 254,000. It previously stood at 264,000; data will be released today at 12:30 UTC.
Also worthy of note, United States Philadelphia Fed Manufacturing Index (May) is expected today at 12:30 UTC. United States Existing Home Sales (Apr) scheduled to come out today at 14:00 UTC.
Amazon hit a significant low of $81.82 around 4 months ago, but has since recovered 38.6%.
