Investing.com | Apr 14, 2020 18:58
Even before the COVID-19 pandemic, Amazon (NASDAQ:AMZN) was already the largest retailer in the world, as well as the biggest cloud computing business on the globe. The owner of this business behemoth, Jeff Bezos, is the world’s richest person at only 54 years old; he's worth a mind-boggling $124.7 billion dollars.
But now it seems, Amazon is set to dominate the retailing world, as thousdands of other industry players fall prey to coronavirus-shutdowns. Indeed, the Washington Post reports that more than a quarter of a million stores have been closed during the outbreak, of which 15,000 are expected to remain shuttered forever, increasing retail store failure by 60%.
But overall, Amazon's value just keeps growing.
Before the broad, coronavirus-related market selloff, the stock price triggered a Golden Cross, when the 50 DMA crossed over the 200 DMA. It's a positive sign, signaling bullish moves ahead.
When this happens, it indicates that a wide range of prices are strengthening and as such, is a technical trigger that financial portals highlight. This insures traders and investors are aware it's happening and what its significance is, making it a potent psychological driver.
In this case, Amazon’s stock managed to climb back above both the 200 and the 50 DMAs, taking aim at the Feb. 19 peak of $2,170.22, which lay just 6.2% above the price.
Yesterday, the shares incredibly returned to within spitting distance of their pre-pandemic selloff, the Feb. 19, $2,186 record, closing a mere 0.06% below it after surging over 6% through the session — which saw the broader market sold off. If that’s not a sign of faith in the stock, we don’t know what is.
Of course, there's no guarantee the stock won't decline if panic ensues and the price finds resistance after yesterday’s failed attempt to post a new closing record. However, as investments go, this one seems like a winner.
Conservative traders will wait for a new peak and its profit-taking correction that is supported by continuous demand.
Moderate traders would likely wait for a new peak and for the pullback, for a better entry, not necessarily for proof of trend.
Aggressive traders may go in with a new peak.
Written By: Investing.com
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