Current trend

The stocks of the world leader in the field of e-commerce Amazon.com Inc. are correcting around the 131.00 mark.

The company is considering plans to launch a joint project with the ESPN service from The Walt Disney Co. It is not yet known exactly what kind of cooperation will be, but the likely purchase of a minority stake in ESPN is indicated. The price for the new service can range from 20.0 dollars to 35.0 dollars per month, which makes the new streaming service the most expensive in the USA.  

The report for Q2 confirms the stable position of the issuer. Thus, revenue amounted to 134.4B dollars, which is higher than the projected 131.45B dollars and 127.4B dollars a quarter earlier. Earnings per share are approaching the figures recorded before the coronavirus pandemic and amounted to 0.65 dollars per share, exceeding the expected 0.35 dollars. The company is in a much more stable position than at the end of last year, when profit reached 0.03 dollars, having previously been in the loss zone.

Support and resistance

On the daily chart, the global ascending channel continues its development with dynamic boundaries of 147.00–122.00, and the price is heading to the support line.

Technical indicators are in the state of a weak buy signal and continue to weaken: the range of EMA fluctuations is narrowing, and the AO histogram is falling, approaching the transition level.

Support levels: 128.00, 118.00.

Resistance levels: 136.00, 143.00.

Trading tips

If the asset reverses and declines and the price consolidates below the local support level of 128.00, short positions can be opened with a target at 118.00. Stop-loss – 134.00. Implementation time: 7 days and more.

If the asset continues local growth, and the price consolidates above the local resistance level of 136.00, long positions with a target at 143.00 and stop-loss at 130.00 will be relevant.