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.
Looking to trade Amazon and other US stocks? Open a live or demo account with IG today.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
