- Amazon is up during the trading session midday on Wednesday, just a touch over 1%.
- We've recently had earnings come out from Amazon that actually sent the stock tumbling, not because of a lack of sales, but the sluggish performance of AWS, Amazon's cloud computing business.
- That being said, we do have a scenario where we have dropped quite nicely.
And now it looks like we're trying to get to that gap right around $235. The 50 day EMA underneath offered support as recently as the previous session. So, it does look like we're trying to go higher. Keep in mind that Amazon is one of the most widely held stocks out there, and this is something that I always keep in mind when looking at AMZN.
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So, if the overall market goes higher, Amazon generally will follow right along and sometimes vice versa. I have no interest in shorting Amazon. And in fact, it's somewhat of a losing game because there is that built in bid due to all those massive funds, putting money into Amazon on an almost quarterly basis.
With all of that, I am looking at a potential buy on the dip strategy, or if we can break above the inverted hammer from Thursday of last week. That would also be a live signal to perhaps see more FOMO trading coming into the market. If we bring down below the $215 level, then I'll be looking for Amazon to reach the 200 day EMA, where buyers are likely to return to find value in a loved company. But I don't really see that happening. At least not yet, unless we get some type of overall market sell off, which of course could change risk appetite for everything, not just this stock.
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