Amazon.com, Inc AMZN was consolidating mostly flat on Tuesday after rising about 2.7% on Monday and bursting up through the psychologically important $150 level.
The MUSQ Global Music Industry ETF MUSQ, which holds a 7.8% weighting of Amazon making the e-commerce and streaming giant the fund’s largest holding, was spiking up about 0.7% higher, continuing to trek north from the break of a bull flag, which Benzinga called out on Dec. 5.
Amazon, like Apple AAPL, runs a music streaming services division that competes with music streaming giant Spotify Technology S.A. SPOT.
MUSQ, which provides concentrated exposure to the complete music ecosystem, covering streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, equipment and technology, and artificial intelligence, holds a 7.18% weighting of Apple and Spotify is weighted at 2.7% within the fund.
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While Amazon has multiple divisions that generate massive revenues, its music streaming service could offer a high rate of growth over the coming years. Music streaming services continue to thrive, contributing significantly to the growth of recorded music revenues and a recent Goldman Sachs report predicts that the global music industry is poised to generate $153 billion by 2030.
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The AMZN Chart: Amazon broke up bullishly from a triangle pattern and possible bull flag formation on Dec. 13 and confirmed a new uptrend by creating a higher high. Since that date, Amazon has continued to trek south within its uptrend, with the most recent higher high formed on Dec. 14 at $150.54 and the most recent higher low printed at the $145.52 mark on the same day.
- The break up from the triangle and bull flag pattern was the most likely scenario because Amazon had been consolidating 26% surge, which took place between Oct. 26 and Nov. 27. If the bull flag is the dominant pattern, the measured move is about 19%, which suggests Amazon could eventually be headed toward the $171 mark.
- Amazon’s eight-day exponential moving average (EMA) has been guiding the stock higher but on Monday, the stock became detached from that area, which caused Amazon to consolidate sideways. If the stock closes Tuesday’s trading day flat, Amazon will print a doji candlestick, which could indicate the local top has occurred and a retracement is on the horizon.
- Amazon has resistance above at $156.10 and at $160.12 and support below at $151.47 and at $146.57.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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