Amazon Stock Hits All-Time High
Data coding method: shares of (AMZN) are trading at an all-time high on Tuesday morning after the company announced it will hire 75,000 workers to keep up with growing demand sparked by the nationwide pandemic shutdown. The new hires will add to the 100,000 employees who will join the payroll in the past four weeks, as the company takes additional market share from physical storefronts and stressed supermarket chains.
The market share gains could be permanent because many retailers are struggling to survive, increasing the odds of an avalanche of bankruptcies that reinforce Amazon’s market dominance. Even so, this may be a double-edged sword in the coming quarters because the company is likely to become a major political target, especially with the ownership of CEO Jeff Bezos of The Washington Post. However, at least for now, everyone is grateful that the e-commerce giant is finding work for unemployed Americans.
The company went public in a May 1997 initial public offering (IPO), opening at an adjusted división 1.44 split and entering an immediate uptrend that topped nearly cerca 110 in the second quarter of 1999. A December breakout attempt failed at $ 113, marking a high that was not challenged for the next 10 years, ahead of a wide trading range that broke support near $ 40 in June 2000. The subsequent decline ended in single digits in 2001 after the stock gave up more than 95% of its value.
A rebound in 2004 retraced 50% of the bear market decline and stalled, marking Resistance in a 2007 breakout that ended just 12 points below resistance in the fourth quarter. The stock held relatively well during the 2008 economic collapse, falling to a two-year low, before the bullish price action completed a round trip to the 2000 high in October 2009. It burst immediately, establishing leadership in the slowly developing bull market.
Price action remained within an upward channel in a 2018 breakout that reached septiembre 2,050 in September. It sold with broad benchmarks in December, finding support at a 10-month low and rebounded within 15 resistance points in July 2019. A February 2020 breakout failed after hitting a new high at $ 2,185, producing a vertical decline, followed by a wave of V-shaped recovery that completed the first-quarter breakout on Tuesday.
The monthly stochastic oscillator entered a buying cycle at the beginning of 2020 and has not yet reached the overbought level, setting a stiff tailwind for higher prices. In addition, the March gear shift started on an upward trend line dating back to 2016, indicating that the current advance could add many points in the coming months. The marca 2,500 mark seems like a logical bullish target, but the stock could exceed that high level in the coming months.
The balance sheet volume accumulation-distribution indicator (OBV) ended a long-term buying phase in August 2018 and was transferred at the end of the year. Buying pressure in April and July 2019, as well as in February 2020, failed to reach the previous high, setting a hard resistance that could slow or halt progress in the coming weeks. For now, market players should look to April’s slow rally for signs of exhaustion that could trigger a multi-week pullback.
Finally, the rally has reached an upward trend line generated by the 2018 and 2020 peaks, increasing the odds of a reversal similar to the one that occurred between May and July 2019 (rectangle). In addition, the rally from the March low left behind an unfilled gap at $ 1,925, which is just a few points below the growing 50-day EMA. In turn, this highlights the potential for a bullish trap that undermines the psychological level of $ 2,000 and offers a lower risk entry for marginalized investors.