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Wednesday, November 25, 2020

Amazon, Apple, Facebook price analysis roundup

  • Technology shares closed in red this Friday, Amazon fell 5.45%, Apple 5.6% and Facebook 6.3%
  • The attention of investors is focused currently on the upcoming presidential elections
  • The next several months will be competitive for the technology sector

Concerns about sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets. The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million and the U.S. stock indexes weakened last week.

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Amazon shares have weakened 5.45% after it forecast a jump in costs related to COVID-19. Apple tumbled 5.6% after it posted the steepest drop in quarterly iPhone sales in two years while Facebook shares have weakened 6.3%.


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The attention of investors is also focused currently on the US stimulus aid package negotiations and the upcoming presidential elections. The US presidential elections will be on November 3 and according to the polls, US President Trump’s rival, Joe Biden, leads.

Democrats and Republicans are using a coronavirus aid package as an election tool, both parts have reported “progress,” but continued to extend discussions. There are little chances of an aid bill being approved before November 3 because it would need to pass Congress.

Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year. Vaccines and treatments are still under study and advancing, but there’s no magic solution yet.

Even further, there won’t be one in the foreseeable future. And that means more economic contraction or in the best-case scenario, slow growth.

Amazon shares remain in a bull market

As long the price of Amazon is above $3 000 this stock remains in the “buy” zone and there is no indication of the trend reversal.

Amazon Apple Facebook price analysis roundup
Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are $3 000 and $2 800, $3 300 and $3 500 represent the resistance levels.

If the price jumps above $3 300 it would be a signal to buy Amazon shares and we have the open way to $3 500. Rising above $3 500 supports the continuation of the bullish trend and the next price target could be located around $3 600.

On the other side, if the price falls below $3 000 it would be a “sell” signal and we have the open way to $2 900.

Apple has found strong support above $100

Apple shares have weakened last week after it posted the steepest drop in quarterly iPhone sales in two years. I feel that the price of this stock can weaken even more in the upcoming days and maybe it is not the best time to invest in Apple.

The risk/reward ratio is not good currently and my opinion is that there are lots of other stocks with more opportunity.

1604180006 659 Amazon Apple Facebook price analysis roundup
Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are $100 and $90, $120 and $130 represent the resistance levels. If the price jumps above $120 it would be a signal to buy Apple shares and we have the open way to $130.

Rising above $130 supports the continuation of the bullish trend and the next price target could be located around $150. On the other side, if the price falls below $100 it would be a strong “sell” signal and we have the open way to $90.

Facebook shares are trading again below the $300 level

Facebook shares have weakened last week but even with the COVID-19 pandemic, the business of Facebook is going well. Facebook is moving to monetize WhatsApp messaging and this will enable businesses to sell products inside the app.

1604180007 596 Amazon Apple Facebook price analysis roundup
Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are $260 and $240, $280 and $300 represent the resistance levels. If the price jumps above $280 it would be a signal to buy Facebook stock and we have the open way to $300.

Rising above $300 supports the continuation of the bullish trend for Facebook and the next price target could be located around $320 or even $330. On the other side, if the price falls below $260 it would be a strong “sell” signal and we have the open way to $240.

Summary

The US presidential election, the Federal Reserve monetary policy meeting and the release of the October Nonfarm Payroll report, will all take place next week. The US stock market is pressured by the Covid-19 pandemic environment and the next several months will be competitive for the technology sector.

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