AMAZON Technical Analysis – Starting to breakout

Amazon’s share price is becoming more volatile ahead of Thursday’s key second-quarter earnings and investor call. Wall Street will now be seeking confirmation that the tech giant intends to offer crypto payments.

A recent jobs advertisement looking for a “crypto and blockchain” expert has been confirmed by the company, which certainly suggests that the world’s fourth largest company, with a market cap of $1.6 trillion, could be moving into crypto.

The price of Bitcoin has already posted double-digit gains on the Amazon news, not to mention huge moves in other cryptos based on the fact that this could be one of the largest bullish catalysts for cryptocurrencies ever.

So far, the speculation is overshadowing the coming Q2 earnings, with Amazon’s Q2 revenues of $88 billion, marking a strong increase from the same time last year of around 29 percent. However, a so-called “insider” has debunked reports about Amazon moving into Bitcoin, although the company may touch more on this during the earnings call.

The company’s Q2 earnings per share is widely predicted to come in $10.30 on average, although some Wall Street analysts are expecting as high $12.00 per share. In Q1 Amazon’s EPS skyrocketed to $15.79 per share.

Amazon’s share price is starting to break out already and shows significant scope for further upside according to medium-term technical analysis. A move towards $4,000 seems imminently achievable, while $4,800 is within the realm of possibility also.                             

AMAZON Short-Term Technical Analysis

The four-hour time frame looks bullish with Amazon’s stock price creating higher highs and lower lows, and also the stock was aggressively bought during last weeks price dip over COVID-19 concerns.

Looking at technical indicators the four-hour RSI indicator is slightly above 50 and remains bullish, and also suggests that the stock is not overbought in the short-term horizon.