The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
It has been yet another bumper year for Amazon stock, with the price up 30% since 1 January, compared to 14% for the Nasdaq and 8% for the Dow Jones. There seems little to stop further gains, and from a technical and seasonality standpoint, the outlook remains encouraging.
The all-time high in Amazon shares occurred on 6 June, and since then they have fallen back. However, the bulls defended the $945.46 level, which was support throughout June. It makes sense to expect further gains, although a deeper retracement to the longer-term trendline, which has held since February 2016, could provide a more attractive entry point. This would suggest a move back down towards $930.