Amazon.com Inc. was hit by a European Union order to pay 250 million euros ($294 million) plus interest in back taxes to Luxembourg as the world’s biggest online retailer became the latest U.S. giant to fall foul of the bloc’s state-aid rules.
The European Commission on Wednesday also said it’s suing Ireland for failing to recoup last year’s record 13 billion-euro bill from Apple Inc.
Currently, the indicative Amazon price for trailers is about $951.36 or 0.60% lower. Our expectations are for a drop in the stock price at the moment the US interbank market is launched. If we take the example of Apple's fine of $13 billion, the market response was -5% of the asset's value. In this case, Amazon's price is in a correctional channel, and with a 5% drop, it will reach 200 average and 50% correction of the last rising impulse. There after good Price Action in the coming days, we can position ourselves with long positions and stops below 200SMA and 50% Fibonacci adjustment.
At first glance, the idea of Long during such news is illogical, but history shows that big tech companies do not lose the faith of investors even after such events. On the contrary, such events lead to a strong price increase within a few days.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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