Amazon share price may be higher today, but it is battling significant headwinds after it peaked at 3551.77. The company has had to shut down a facility in New Jersey after a spike of asymptomatic coronavirus cases among workers, and it is also battling a series of strikes from its workers who want better conditions of service.
Presently, more than 500 workers have begun an industrial action at an Amazon logistics centre in Hesse, Germany with another 1200 workers expected to join. This brings to six, the number of locations in Germany affected by the strike.
But it is not all doom and gloom. In India, a court has granted the company leave to contest a proposed sale of $3.4 billion worth of assets by its partner Future Group, to a rival company. Amazon could now ask regulators not to approve the sale to Reliance Industries. Amazon has held that the Future Group breached its partnership agreement with Amazon when it agreed to the asset sale.
Amazon share price is up 0.14% currently.
Price broke above the large triangle last week, but met resistance at the 3253.66 price level. This was the basis for the pullback seen yesterday as the markets experienced a selloff. However, the triangle’s upper boundary is now serving as a role-reversed support, with today’s price pushing to the upside.
A retest of 3253.66 could be on the cards if we get more follow-through buying once the market opens. A breakout above this area allows price to push towards the 9 October/9 November highs at 3288.93. Above this level, 3347.32 looks like a potential resistance target, as the price seeks to complete a measured move at 3551.77.
On the flip side, a decline below 3084.19 is the trigger for continued selling on the stock, which opens the door towards 2992.92 and 2874.57, in the near term. Psychological support at 2800.94 (24 June high) also lies below.
