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Amazon Breaking Out
Shares in Amazon are trading higher today ahead of the open. The company’s stock was seen rallying sharply yesterday in response to the latest US inflation data which came in below forecasts. On the back of the Fed’s guidance issued at the FOMC last week, yesterday’s weaker-than-forecast US inflation print has all but confirmed a pause from the Fed next month. Against this backdrop the near-term outlook for stocks has improved considerably. Tech stocks have been among the biggest beneficiaries with key names such as Amazon seeing a flood of demand as traders move back into higher yielding assets.
US PPI in Focus Today
Looking ahead, today’s US PPI release should further reinforce the bullish view on stocks. While a small increase is expected on the prior month, any undershooting of these forecasts today should further strengthen the view that the Fed will pause tightening next month creating a platform for higher prices near-term in stocks. Investor sentiment remains bullish on amazon following a solid set of Q1 earnings figures meaning that the stock should continue to push higher for now.
Technical Views
Amazon
The stock continues to push higher within the bull channel which has framed the move off YTD lows. Price is currently challenging the 110.19 level resistance with the bearish trend line from last year’s highs sitting around that level also. Should price break higher here this will open the way for a further push towards the 123.79 level above. To the downside, 103.36 remains the key support to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.