Stock of the day for pre-market preparation: Amazon – Amazon (AMZN)
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this fast-paced and highly informative hour, traders and investors tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick as well as producer Spencer Israel.
There are obvious catalysts for moving an issue higher, like rising profits or an upgrade by a Wall Street analyst. Then there may be the one that is not so obvious, such as the period leading up to a high profile event.
June 21 and 22, Amazon.com, Inc. (NASDAQ: AMZN) will have Prime Day and the price action leading up to the event makes it the stock pre-market prep day.
It is now a trading range: For the most part, Amazon has been in the $ 3,000 to $ 3,500 range over the past 11 months. The show spent very little time below $ 3,000 and above $ 3,500. While it’s usually a slow grind when going from extremes, it has seen an impressive evolution over the past nine sessions.
Rotation plays a role: One of the big factors in Amazon’s rally this week has certainly been another vicious industry spin that has been so prevalent over the past few months. The flavor of the past few weeks has been taken away from financial woes and other issues that are doing better with higher interest rates and in the mega-cap growth tech sector.
This divergence is best illustrated by the horrific performance of the Dow Jones Industrial Average, pushing back its all-time high, while the Invesco Trust QQQ Series 1 (NASDAQ: QQQ) set a new high-tech fueled record Thursday.
First day : While it hasn’t been much in the mainstream media this week, it will be everywhere next week. The media will publish the billions of dollars that are garnered there several times. All of a sudden, they’ll focus on closeness to Amazon to hit a new all-time high. The constant flow of positive feedback can get more investors to participate.
Moving forward: With the actual event taking place Monday and Tuesday, there is certainly room for more potential.
With the issue performing well in a weak band in Friday’s session, down $ 6 to $ 3,483 at 2:45 p.m. EST, it’s hard to predict the rally is about to be over. – higher in time ($ 3,552.25) from September, there could be more upside.
Optimistically, how far could Amazon go if it finally got out of its nearly one-year consolidation pattern?
The price doesn’t lie: Of course, there is a chance that the opportunistic buyers of the last few weeks will be waiting to offload the laggards. If one is to take this approach to rallying, it is imperative to reach a new all-time record and keep going. If not, late show buyers will sell into a much harder show on the downside instead of having your bids lifted today and maybe Monday and Tuesday.
The Amazon discussion of the Friday show can be found here: