The wins could be really big if this continues to play out. Amazon has been a case study on trading stock splits. When the announcement came out, the stock rallied and shot up. We noticed it and dove into a potential strategy about a month ago. (you can read that here) Since then it has acted pretty much as expected… and that is a great opportunity. Take a look at the chart:
When we wrote about it back at the end of March we were looking to see if the 200 day moving average would be a ceiling for the post split news run. It can be tough to get in on that initial run but many times there is a pullback as the people who did get in take profits. If the goal is to be in before the end of May when the split will take place, this recent move might create a solid buying opportunity. We can see consolidation around the 50 day as well as the MACD showing signs of turning up.
In addition, Amazon just acquired MGM to boost its streaming business and has also announce a $10 bil buyback program that should be a positive sign for the stock price.
Keep learning and trade wisely,
Market Wealth Daily