Is Amazon (AMZN Stock) set for further gains on impressive seasonal strength? [Video]


Although equity markets have been selling off this week the broad conditions for buyers remain in place. Easy central bank monetary policy and broad fiscal stimulus from Washington should provide confidence for dip buyers.

 

Does Amazon have another run higher in keeping with its seasonal pattern? Over the last 10 years, Amazon has gained in value every single year between the dates of May 18 and July 27. The largest gain was in 2020 with a massive 25.92% profit. Although it is hard to imagine these gains again, do Amazon shares have another leg higher in them this year?

Major trade risks

  • The main risk to this trade is from any risk-off tones which will weigh on equity prices.

  • A fast rise in US inflation could result in bond tapering which would potentially weaken stocks too.

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High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

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