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- After Google, The EU Throws Glove to Amazon – How to Benefit?
After Google, The EU Throws Glove to Amazon - How to Benefit?
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Loading...Regulatory bodies that imposed $5b Google's fine also turned to Amazon.
European Competition Commissioner Margret Vestagger has begun to question merchants about the use of Amazon data. The question is whether Jeff Bezos's company uses data from its vendors, which it hosts through its site, to provide advantage over the sale of products to traders outside of Amazon.com.
How to proceed in such situations? - Buy The Dip!
In Google, the 5-billion-dollar fine was just a tweak that led to a short-term adjustment where we were able to position ourselves with new long positions. Let's look at Amazon technically to find out where to position, even after a fine on the part of the EU.
Amazon - Daily Chart
Our expectations - The price is in a high upward trend, with rumors coming at the right moment, forming a corrective movement. The price has now reached a support area that is better suited to positioning risky traders. Two internal diagonals + 50SMA are available to support the long, as well as the short horizontal. However, the current level does not provide a good risk-benefit ratio, so we need to wait for an adjustment to the second support area of around $1800/$1850, where we will have more criteria to support the larch. RSI (14) crosses 50 from top to bottom, indicating a possible deepening of the corrective wave.
Despite the short-term negative foundation, the company remains highly profitable and it is good to place it on our Watch List.
Alternative Scenario: If the adjustment worsens to such a degree that the price goes below the baseline and 23.6% Fibonacci correction, the positive scenario will break down is more likely to observe a decrease.
Trader Petar Milanov Read more:
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