Amazon shares rise sharply after the elections do not show a clear winner.

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The technical picture indicates that the price could very soon rise above 3300 dollars
Amazon has recently published the results of the Q3 income, total income increased by 37.3% y/y
There is still no clear winner, but the camp of Biden hopes that they will cross the 270 threshold today

The U.S. presidential election remains tense, 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 falling.

Fundamental analysis: Amazon’s business continues to grow rapidly

Investor attention is currently focused on the U.S. presidential election, and the U.S. stock market continues to advance despite the ongoing election uncertainty. Joe Biden has a good chance of becoming the 46th president, and Biden’s camp hopes that they will pass the 270 threshold today.

Amazon (NASDAQ: AMZN) stocks have risen to over $3,240 after the elections failed to show a clear winner and the current price is around $3,232. Amazon’s business continues to grow rapidly and the company is becoming a supply channel for many consumers in the age of the COVID 19 pandemic.

Amazon recently released third quarter earnings results, with total revenues up 37.3% year over year to $96.1 billion and GAAP earnings per share for the third quarter of $12.37. Amazon reported AWS revenues of $11.6 billion in the 3rd quarter, in line with consensus, and a 29% year-on-year increase.

It is also important to note that Amazon Web Services was the leading cloud services provider with 32% of total spending. Amazon continues to expand its Go Grocery concept, and the company opened another Amazon Go Grocery store in the Seattle area.

The concept allows customers to shop without having to stop at a checkout by scanning an app on their cell phone when they enter. It’s also important to note that Amazon is introducing its first custom electric vans, which are one of three models designed and built in partnership with Rivian.

The company’s goal is to reach 10,000 custom electric vehicles by 2022 and 100,000 vehicles on the road by 2030. Analyst Daniel Kurnos raised Amazon’s price target from $3675 to $3800, and the technical picture suggests that the price could rise above $3,300 in the coming days.

There are some obvious risks involved in trading Amazon (NASDAQ: AMZN) stock, but as long as Amazon’s price remains above $3,000, the stock will remain in the bull market.

Technical analysis: Amazon shares remain in a bull market
Data source: tradingview.com

On this diagram I have 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 path to $3400. A rise above $3500 supports the continuation of the uptrend and the next price target could be around $3600.

If the price on the other side falls below the $3100 level, it would be a “sell” signal and we have the open path to $3,000.

Summary

The U.S. stock market is rising amidst great uncertainty about the outcome of the U.S. presidential election in 2020. Joe Biden has a good chance of becoming the 46th president, and the camp around Biden hopes that they will pass the 270 threshold today. Amazon stocks have risen to over $3240 after the elections failed to show a clear winner and the current price is around $323232. Analyst Daniel Kurnos raised Amazon’s price target from $3675 to $3800, and the technical picture suggests that the price could rise above $3,300 in the coming days. Still, I think this stock is overvalued, but it could be a good “buy” opportunity for the short-term traders who trade “stop loss” and “take profit” orders.

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