Amazon shares rise sharply after elections show no clear winner

The US Presidential election remains tight, and according to the latest news Biden is improving his position in Michigan and Wisconsin. The US stock market is rising while the safe-haven dollar is down.

The attention of investors is focused currently on the US presidential elections and the US stock market is advancing despite ongoing election uncertainty. Joe Biden has a good shot at becoming the 46th President and Biden’s camp hopes they will cross the 270 threshold today.

Amazon (NASDAQ: AMZN) shares have advanced above $3240 after elections show no clear winner and the current price stands around $3232. Amazon’s business continues to grow rapidly and the company become a supply channel for many consumers in the age of COVID-19 pandemic.

Amazon has released recently Q3 earnings results, total revenue has increased by 37.3% Y/Y to $96.1B and Q3 GAAP EPS was $12.37. Amazon reported AWS revenue of $11.6B in Q3, matching consensus, and up 29% Y/Y.

It is also important to mention that Amazon Web Services was the leading cloud provider with a 32% share of the total spend. Amazon continues with expanding its Go Grocery concept and the company opened another Amazon Go Grocery store in the Seattle area.

With this concept, customers are able to shop without stopping at a checkout stand by scanning an app on their phone as they enter. It is also important to mention that Amazon unveils its first custom electric delivery vans, which are one of three models designed and built in partnership with Rivian.

The goal of the company to reach 10K custom electric vehicles by 2022 and 100K vehicles on the road by 2030. Analyst Daniel Kurnos raised Amazon’s price target from $3675 to $3800 and the technical picture implies that the price may advance above $3300 in the upcoming days.

There are some obvious risks when it comes to trading Amazon (NASDAQ: AMZN) shares but as long the price of Amazon is above $3000 this stock remains in the bull market.

On this chart, I marked important resistance and support levels. The important support levels are $3100 and $3000, $3300 and $3500 represent the resistance levels.

If the price jumps above $3300 it would be a signal to buy Amazon shares and we have the open way to $3400. Rising above $3500 supports the continuation of the bullish trend and the next price target could be located around $3600.

On the other side, if the price falls below $3100 it would be a “sell” signal and we have the open way to $3000.

Summary

The US stock market is rising amid a huge uncertainty about the outcome of the 2020 U.S. presidential elections. Joe Biden has a good shot at becoming the 46th President and Biden’s camp hopes they will cross the 270 threshold today. Amazon shares have advanced above $3240 after elections show no clear winner and the current price stands around $3232. Analyst Daniel Kurnos raised Amazon’s price target from $3675 to $3800 and the technical picture implies that the price may advance above $3300 in the upcoming days. Despite this, my opinion is that this stock is overvalued but it could be a good “buy” opportunity for the short-term traders who are trading with “stop-loss” and “take profit” orders.

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