Is Amazon’s share price heading for new all-time highs?
Consumer protection is a major concern in Germany. This is why a German consumer protection organisation felt compelled to take legal action against Amazon. The issue was whether an online retailer had to provide its customers with a contact option via a telephone hotline. Yesterday, the European Court of Justice ruled in favor of Amazon. Online merchants do not have to provide customers with a telephone hotline but do have to offer a quick way to contact them. Amazon can consider this judgment a victory.
The Amazon triumph is continuing on the stock market. For the past few days, the online trader has hit new daily highs and is just a few dollars short of the all-time highs of 2018 in the zone around US$2039.
The question that always comes up is the question of the other resistance zones after the market has overcome a new all-time high. Here we are in uncharted territory, and a resistance zone cannot be determined by the existing structure in the chart. Once the market has overcome the 2018 highs around US$2039 there could be resistance in the US$2109 zone. If the market also breaks through this area with momentum, a more distant resistance area could be in the US$2255 region.
However, if the bulls are too weak to drive the market higher, and it bounces off the 2018 highs at US2039, then the market could find support in the US$1992 area. Further support for the market could come at US$1942, US$1891 and US$1829.
The MACD oscillator already showed a bullish cross in early June and is currently wide open. Only the histogram shows a weakness. In spite of new highs, this movement could not be correctly mapped by the histogram.
AMZN.US Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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