Amazon continues to show that it is one of the most attractive assets for the investor. Even after the departure of its founder Jeff Bezos and despite Joe Biden wanting to apply the new antitrust regulations that could pose a ‘risk’ to this security.
Long-term sentiment on Amazon remains positive, supported by institutions like Bank of America and Morgan Stanley that give target prices per share of $ 4,360 and $ 6,000 respectively. Although this last target price would be for the period of 2023, it makes it an asset to have in the long-term portfolio.
Despite these fundamental news that help the logistics company have current growth of 13% It is necessary to highlight two risks that can lead to times of instability marked by, lack of growth margin due to high share price and that Washington is calling for faster compliance with antitrust rules that would directly affect bigtech, including Amazon itself.
Amazon stock evolution. XTB
The price has been consolidating its growth in price despite this punctual correction of the last days, which caused it to fall 7% due to the instability of the equity markets caused by high inflation and the rapid expansion of the Delta variant, which endangers the opening of many economies.
The price hit a support zone at $ 3,500 per share from which it has started its slight recovery in order to touch again its all-time highs at $ 3,777. Although, to get here, we will go through a rally, as indicated by the averages of 50 and 100 sessions.
In summary, and based on the Fibonacci retracements, it warns of a scenario for the short term in which levels will have to be watched of 38.2 ($ 3,543) as a support zone. In the case of breaking it down, in the face of weak macroeconomic data, we would go to a price zone of $ 3,472.
In the event that it is marked as a consistent support, the price will have to reach the levels of 23.6 to break them in favor of reach all-time highs again in the medium term.
*** Antonio López de Carrizosa is an analyst at XTB