Amazon share price shows resilience amid Covid-19 selloff

Amazon’s 25% fall from its February high has not been followed up by further declines, and the stock has held its ground above $1600.

Amazon has, along with the broader market, benefitted from the largest three-day stock market rally since 1933, with share prices bolstered by US politicians approving a $2.2 trillion Covid-19 stimulus package – the largest of its kind in American history.

Since Amazon’s 25% fall from its February high, the stock has not seen any further declines with its share price managing to hold above $1600 levels, showing resilience amid the Covid-19 sell off.

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Amazon: technical analysis

The current coronavirus crisis barely even registers on Amazon’s monthly chart. The price has been stuck below $2050 since the beginning of 2019, but dips towards $1600 have been met with buying pressure.

This stands in stark contrast to so many stocks, which have fallen dramatically. In any market, be it bull or bear, it makes sense to buy the stocks that show the strongest performance and hold up well in a time of crisis. The last big market selloff, in late 2018, also only suffered moderately, although it still fell by around 30%.

Since April 2019, the stock has been stuck in a range, although there was a brief breakout in February 2020 to a new record, this proved fleeting, but while the price fell 25%, it found support around $1600, as it has done for the past year.

In the short-term, the price has rallied from the $1600 support zone, but has failed to push on above $2000. Above this lies $2200, while a drop back below $1800 might suggest $1600 will be tested again.

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