- Amazon looks like it’s going to open down for the session here on Tuesday as pre-market trading has been pretty abysmal.
- That being said, we are going to open right around the crucial $215 level, which is an area that’s been important multiple times, going back several months.
- So, I think we are just simply in an area that a lot of buyers might be interested in.
I’ll be watching Amazon during the session to see if maybe we get lucky, maybe we get a little bit of a drop at the open and then a bit of a bounce. If that happens, I’m willing to buy at least for a play on the overall consolidation, maybe for a move all the way back to $237. We’ll just have to wait and see.
Amazon is Important
Remember, Amazon is one of the major market movers out there. So, as it goes typically, we’ll go to the rest of the market, watch the Nasdaq 100. If it starts to behave in a positive light, then that could cause a little bit of a knock-on effect here as well. The 200-day EMA was obviously followed by a lot of traders. So that comes into the picture also, but you have to keep in mind, this was a very nasty shot on Friday. And there are a lot of concerns about US-China relations which has a major influence on Amazon as almost everything on Amazon is mass produced in China. The earnings report comes on the 23rd. So, we’ve got a little bit of time. But I think this is also a market that is probably just going to move with the latest trade tensions and the overall market sentiment in general, at least until we get to those earnings reports, because then obviously things become about how the actual company is performing. I think we’re sideways at the moment, and we should open up in an area that is least interesting and enticing for those who want to get long.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
