How Amazon stock can break records
Shares are up almost 50% since Christmas, but our chartist thinks an all-time high is possible.
24th April 2019 10:02
by Alistair Strang from Trends and Targets
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The shares are up almost 50% since Christmas, but chartist Alistair Strang thinks an all-time high is possible.
As Amazon's (NASDAQ:AMZN) share price trundles on toward results day, we're calculating a trigger level of $1,979. To be fair, this is the initial target level with moves now above $1,930 indicating the potential of $1,979 making an appearance.
Above this level and things get interesting, provoking $2,206 as possible. This would present a new "all time high" for Amazon and take the share price into a region where a distant $2,674 will be regarded as influencing price growth.
Essentially, the $2,674 ambition will tend make positive news cause the share price to outperform, whereas negative news will tend underperform. Unless, of course, it's really negative!
If everything were to go wrong for Amazon, the share price needs move below the $1,600 level. Visually something has been happening at this level until recently as now, below $1,600 indicates coming weakness to $1,245 initially. If broken, it should bottom around $996.
We suspect our calculation of $2,206 shall prove viable, given share price performance this year.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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