Apple drops 7%, Amazon surges 12% as investors pick AI winners after earnings
Following the earnings announcement, investors have chosen Amazon (AMZN) as a beneficiary of AI, resulting in a significant surge in its stock price. In contrast to Apple's decline, Amazon saw a 12% jump in pre-market trading after the earnings report, attracting market attention.
Following the earnings announcement, a strong buying momentum has emerged, leading to a sharp increase in the stock price. Over the past 7 days, the stock exhibited a volatility of -4.9%, and we noted a reversal in the trend accompanied by increased trading volume after the earnings report.
If the stock price reaches the resistance level of $250.0, I will take profits, and if it falls below the support level of $215.0, I will cut losses.
The RSI(14) is at a relatively low level of 40.6, and the moving averages have not yet aligned in a bullish formation. However, the trading volume has surged to 2.58 times the 20-day average, indicating strong volatility.
While we accurately captured the strong increase in trading volume following the earnings announcement, we underestimated the momentum of the rise, achieving a return of 14.3%, significantly exceeding our target return of 2.5%.
We have confirmed that a sharp rise can occur even when the moving averages are not in a bullish arrangement. In the future, during periods of increased volatility, we will consider the strength of the trend more closely when setting target prices.