Amazon’s stock surges on impressive new stats

Amazon stock price was up by +4.3% yesterday when the company announced that 5 million new customers started Prime free trials or began paid memberships accounts, from all around the globe. This could be viewed as a new revenue stream for Amazon, and many believe it could help the company reach its future targets for improved and faster service to its clients. Also more positive stats from Amazon indicated that the number of items delivered via Prime one-day and free-same day delivery was four times higher compared to the previous holiday season. Customers and investors seem to appreciate Amazon’s rising shipping competitive advantage. Amazon shares broke out of the range it was trading within since August 2019 which was between the (S1) 1850 level and the (S3) 1735 line. The stock yesterday closed at $1868.77 and if the upward momentum is to continue then the most probable stops higher could be the (R1) 1900.50, the (R2) 1930 or even the (R3) 1964.40. In the opposite direction, a downward movement could send the share to the (S1) 1850 support line and even surpass it heading for the (S2) 1785.50 line. The next stop lower could be the (S3) 1735 line. Please note Amazons stock is up 24.42% on a year to date basis.

Oil and Gold prices stabilize higher

One of the most notable runs in the previous days was performed by XAUUSD that managed to brake higher and briefly touched $1514 today in the Asian session. Some analysts still view the trade front between the US and China as unresolved, and could continue to do so until the phase 1 deal is finally signed. Even though, reports imply the two sides are in constant communication between them, market followers may want to see solid evidence in order to remove the economic risks that follow the matter. XAUUSD managed to break above all our previous resistance levels which have now turned to support lines. At the moment Gold is trading very near our (R1) 1514 level last seen on the 4th of November. The next probable stops higher in case the bullish reaction is to continue could be the (R2) 1532 line that has not been seen since the 25th of September. Even higher is the (R3) 1552 level which was last seen on the 5th of September. In the opposite direction a move downward could send the precious metal back to the (S1) 1504 level initially and then continue for the (S2) 1492 or even lower for the (S3) 1479 line.

Also, WTI prices continued to rise in the latest days with the commodity reaching $61.65 per barrel in today’s Asian session. In our view, the effects of the production cuts announce previously by the OPEC plus group could have a stronger influence on prices than initially expected. Moreover, the EIA weekly reading to be released today in the US session, suggests a -1.7M barrels deficit and traders may be preparing the ground for such a scenario to materialize. As per the technical analysis for WTI, if the commodity manages to clearly break above our (R1) 61.65 level then the next stops higher could be the (R2) 63.15 line or even the (R3) 65.00 level. We must note the commodity has moved in an upward trend line since the 3rd of October. However, in the opposite direction a move lower could send the commodity back to the (S1) 59.70 line and even lower for the (S2) 58.20 level. Even lower the (S3) 56.50 level is also possible. In addition, according to the Dollar Index, the USD has been weaker in the latest session and this may have also added to Gold’s and WTI upward movement.

Other economic highlights today and early tomorrow

In the European morning we get the ECB Economic bulleting while in the US session we get the EIA weekly Crude Oil Inventories.

Amazon’s daily chart

Support: 1850 (S1), 1785.50 (S2), 1735 (S3)
Resistance: 1900.50 (R1), 1930 (R2), 1964.40 (R3)

XAU/USD 4 Hour chart

Support: 1504 (S1), 1492 (S2), 1479 (S3)
Resistance: 1514 (R1), 1532 (R2), 1552 (R3)

WTI Daily chart

Support: 59.70 (S1), 58.20 (S2), 56.50 (S3)
Resistance: 61.65 (R1), 63.15 (R2), 65.00 (R3)

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