Trading Amazon.com before earnings. Why this level is so critical.
@Binni Ong：
I've been watching Amazon.com recently as prices have been hovering near the $190 level. First, let's discuss why $190 is such an important level. Weekly chart From 2021 to 2024, $190 has acted as a key resistance level. Between late 2021 and 2022, the price fell nearly 55% from this high. $190 is a key resistance level Daily Chart $Amazon.com(AMZN)$ previous earnings on Aug 2024 saw price gapped down but soon recovered to test the $190 level again! With the upcoming earnings, the price has once again challenged the $190 level, highlighting its significance to the stock. As you know, predicting price movements during earnings is difficult. Based on the current chart pattern—a cup and handle, which is a bullish continuation pattern—I believe the price is likely to rise. But what if it doesn’t? This is when investors need to protect themselves with a hedge. DLCs offer built-in loss protection—the maximum loss is limited to the price paid for the DLCs. While this doesn’t mean you will lose everything, it does provide a clever form of protection. $Amazon.com(AMZN)$ DLCs $AMZN 3xLongSG261006(USAW.SI)$ Long DLC $AMZN 3xShortSG261006(USBW.SI)$ Short DLC Follow me for fresh ideas. :) For more about DLCs, visit https://dlc.socgen.com/en/education/handbook Disclaimer: This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.
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