The Amazon report for the 4Q 2021 was so good that the next day after its publication the company stocks grew by 13%. Investors are not confused that the profit indicator for the stock raised projections about 8 times turned to be high as a result of company’s earnings for the manufacturer’s IPO of Rivian’s electric vehicles.
Probably, in favor of stock growth also play the first published impressive data on Amazon revenue in the online advertising sphere and the unique startup of Jeffrey Preston Bezos in the development of immortality technologies by reprogramming the human genome.
Plus, in February and March, the sector of Consumer Discretionary with the Amazon leader tends to grow.
Technically, Amazon stocks faced the resistance of 3200.
On the one hand, the shooting star of 7 February became a harbinger of the downward reversal.
On the other hand, the next trading day disproved this reversal when company stocks closed above 3200.
What happens next?
If the stock price consolidates above the level of $3200, the following foreseeable targets will be 3500 and 3700.
Otherwise, a decline to the support of 2900 is possible first with the following reverse to 3200 and continuation of growth to 3500.
How to act?
1. A buy is above 3250.We put Take Profit 1 in the range of 3490 - 3510. We put Take Profit 2 in the range of 3690 - 3710, Stop Loss in the range of 3050 - 3100, and then Trailing Stop (the green line on the chart).
2. The set of the BuyLimit order in the range of 2950 - 3000. Take Profit 1 is in the range of 3190 - 3210. Take Profit 2 is in the range of 3490 - 3510. Stop Loss is in the range of 2850 - 2890, and then Trailing Stop (the orange line on the chart).