Strong seasonal pattern for Amazon (AMZN Stock) [Video]
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFERThe broad conditions for equity buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus mean conditions are suitable for further equity gains. However, investors need to be aware that markets have been trading at elevated levels and are struggling to make new highs despite strong Q2 earnings.
Will Amazon move higher in keeping with its very strong seasonal pattern this year? Over the last 10 years, Amazon has gained in value ten times between June 03 and July 18. The largest gain was in 2020 with a huge 28.99% profit.
Online activity has been elevated during lockdowns with high levels of consumer demand restricted to online shopping channels. Will this demand be enough to keep Amazon’s strong seasonal pattern going for the eleventh year?
Major trade risks
-
The main risk to this trade is from any risk-off tones which will weigh on equity prices.
-
A fast rise in US inflation could result in bond tapering which would potentially weaken Amazon share price if US interest rates are expected to rise.
The broad conditions for equity buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus mean conditions are suitable for further equity gains. However, investors need to be aware that markets have been trading at elevated levels and are struggling to make new highs despite strong Q2 earnings.
Will Amazon move higher in keeping with its very strong seasonal pattern this year? Over the last 10 years, Amazon has gained in value ten times between June 03 and July 18. The largest gain was in 2020 with a huge 28.99% profit.
Online activity has been elevated during lockdowns with high levels of consumer demand restricted to online shopping channels. Will this demand be enough to keep Amazon’s strong seasonal pattern going for the eleventh year?
Major trade risks
-
The main risk to this trade is from any risk-off tones which will weigh on equity prices.
-
A fast rise in US inflation could result in bond tapering which would potentially weaken Amazon share price if US interest rates are expected to rise.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.