To The Moon

I like to trade on retracement - a concept of buying low but only when this dip is part of an uptrend.

In this article, I wrote about key levels to note if $Amazon.com(AMZN)$ dipped after breaking to a new high.

In this case, I have identified two potential support levels for a re-entry: $189, $201. If the price retraces to these levels and holds, it may offer a favorable re-entry opportunity for traders looking to capitalize on the continuation of the bullish move.

Let’s review the results of this trade.

AMZN retraced to $200 support

Review of AMZN 3x Long DLC Performance

If an investor had entered into the 3x Long AMZN DLC ( $AMZN 3xLongSG261006(USAW.SI)$ ) at the point when AMZN’s stock price was $200, the performance would have been as follows:

1. Underlying AMZN Performance:

   AMZN has risen to $232.93, reflecting a gain of approximately +16.5% from the entry price of $200.

2. 3x DLC Performance:

   Given the leveraged structure of the 3x Long DLC, the expected performance would be roughly 3 times the movement of the underlying stock price, accounting for compounding. As of the most recent update, the 3x Long AMZN DLC has achieved a cumulative return of +46.93%.

3. Comparison and Observation:

   AMZN stock delivered a gain of about +15%.The 3x Long DLC amplified this return, delivering +46.93%, which aligns closely with the 3x leverage after factoring in daily compounding effects.

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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.