Stock Takes Breather After Prime Day Postponement

AMZN has almost doubled off its early-March lows

Digital Content Manager
Jul 21, 2020 at 10:00 AM
facebook X logo linkedin

The shares of, Inc. (NASDAQ:AMZN) are down 1.1% at 3,160.30 at last check, after the company said it will once again postpone Prime Day -- its high-profile online shopping event -- until early October. Amazon had previously rescheduled the event to September, but it is working on returning logistics operations to normal after an increase in online orders during the coronavirus pandemic. Regardless, Amazon earned a price target hike from Evercore this morning to $3,250 from $2,450. 

On the charts, Amazon stock has nearly doubled off its late-March lows near the $1,626 level. Since then, shares have pullbacks contained by consistent support from the equity's 20-day moving average. The security's latest all-time-high came in at $3,344.29 on July 13, but shares have since cooled off and found overhead pressure at the $3,200 mark. Nonetheless, AMZN is up 73% this year.

It's no surprise then that analysts were majorly optimistic toward the equity coming into today. Of the 33 in coverage, 32 sport a "buy" or better, with zero "sells" on the books. However, the stock's consensus 12-month price target of $2,980.85 is a 6.8% discount to current levels, suggesting there could be more price-target hikes on the way.

That sentiment is echoed in the options pits, where the appetite for calls is high. AMZN sports a 10-day call/put volume ratio of 1.62 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 94% of readings from the last year, suggesting a much healthier appetite for calls than what is typically seen. 


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!